Soilbuild Business Space REIT said on Thursday that it was informed third party has filed an application for tenant NK Ingredients, which is currently in default of its lease agreement, to be placed under judicial management with the High Court of Singapore.
“The manager is seeking legal advice on its position with respect to the application, as well as on the tenant’s indication to the High Court of Singapore that it intends to file an application under section 211B of the Companies Act for a moratorium pending the Tenant’s proposal of a Scheme of Arrangement to its creditors,” the REIT said in a filing to SGX after the market close on Thursday.
If NK Ingredients successfully files for a moratorium, it would gain a stay on creditor actions against the company, including from winding-up petitions, asset seizures and forfeiture of leases.
The REIT said NK Ingredients owes S$1.72 million, including rental for February, while it currently holds a security deposit of S$2.56 million.
The excess of the security deposit over the arrears amount is S$837,002, or around two months’ rent, Soilbuild REIT said.
The NK Ingredients property, located at 2 Pioneeer Sector 1 in Singapore, made up 6 percent of fourth-quarter gross revenue and takes up 4 percent of the portfolio by asset value, according to the REIT’s fourth-quarter earnings presentation. It contributed 6.2 percent of monthly gross rental income, the presentation showed.
NK Ingredients did not immediately respond to Shenton Wire’s emailed request for comment.
The REIT’s current portfolio has 11 Singapore properties and two Australian properties, it said.