China Tobacco discontinues Hengde Logistics Phase 1 lease: EC World Reit

The lease has a term from 5 October 2020 to 31 December 2023.

EC World Reit revealed that China Tobacco will no longer continue the lease of 159,752-square-metre Hengde Logistics Phase 1 at Min Lian village in Dongzhou Industrial Park, Fuyang District, Hangzhou City.

"The Manager wishes to update unitholders of EC World REIT (“Unitholders”) that despite the Manager’s active negotiations with China Tobacco about the renewal of the lease at Hengde Phase 1, China Tobacco has decided to discontinue the lease," read the statement filed on SGX company announcements. 

EC World also told its shareholders that it is exploring a new leasing strategy for Phase 1.

It can be recalled that EC World, the lessor of the property, and China Tobacco Zhejiang Industrial entered into a lease deal for Hengde Logistics.

The lease term for the Phase 1 is from 5 October 2020 to 31 December 2023.

For Phase 2, meanwhile, discussions are pending.

The 74,057-square-metre Phase 2 of Hengde Logistics is from 9 May 2021 to 31 December 2023.