EC World REIT defers payment to unitholders over insufficient cash

The property investment firm is working with the sponsor group.

Singapore-based REIT, EC World REIT, declared that it will delay its distribution to unitholders, driven by insufficient funds, which was affected by the sponsor group’s failure to pay overdue rent receivables. 

In a bourse filing, the firm said its sponsor group also did not provide a satisfactory repayment plan, which delayed the scheduled 28 September 2023 distribution to unitholders.

The distribution will be done once EC World REIT has insufficient funds for the unitholders.

“For instance, EC World REIT’s inability to pay debts is an event of default under the Facilities,” read the statement.

“It is also possible that the above-mentioned circumstances may be viewed by the relevant lenders under the Facilities to constitute a material adverse event which in turn results in an event of default under the Facilities,” it added.

The firm is now working with its sponsor group to find solutions and detect repayment plans. They are also seeking independent consultants to resolve the issue.