MLT, Cache Logistics, AIMS APAC REIT all say CWT has not defaulted on rental payments

Signage for HKEx, Hong Kong’s stock exchangeSignage for HKEx, Hong Kong’s stock exchange

Mapletree Logistics Trust, Cache Logistics Trust and AIMS APAC REIT separately stated on Tuesday that CWT Pte., which is a tenant of all three REITs, has not defaulted on rental payments.

Their announcements came after Hong Kong-based CWT International reported on Tuesday that it failed to pay interest and fees of around HK$63 million on a loan of HK$1.4 billion. Due to the default, the lenders have declared all of the amounts due immediately, with the security now enforceable, CWT International said in a Hong Kong Stock Exchange filing on Tuesday.

The security includes all of CWT International’s 100 percent shareholding in subsidiary CWT Pte., which holds logistics services, commodity marketing, engineering services and financial services, the HKEx filing said.

In Singapore, Mapletree Logistics Trust said that CWT Pte. and its subsidiaries were tenants at five of its properties, and contributed 9.1 percent of revenue for the fiscal third quarter ended 31 December.

MLT said in a filing to SGX on Tuesday that CWT Pte. has not defaulted on its rental payments, there were no arrears currently due and the trust holds security deposits for six months of CWT Pte.’s rental.

In a separate SGX filing, Cache Logistics Trust said CWT Pte. was a tenant of CWT Commodity Hub and Pandan Logistics Hub, and the company contributed around 16.5 percent of its gross rental income as of Tuesday, down from 20.6 percent at end-2018.

Cache said there were no arrears, and it held an average of around three months security deposit on the leases.

It added that each of the leases had underlying end-users, which Cache has engaged with previously, and as CWT Pte.’s leases expire, the trust can negotiate with the end-users and other prospective tenants to maintain occupancy.

In its own statement, AIMS APAC REIT — formerly known as AIMS AMP Capital Industrial REIT — said CWT Pte. was a tenant at two properties and was a top-10 tenant, contributing 8.4 percent of the REIT’s fiscal third quarter gross rental income.

But it added there were currently no arrears and it holds security deposits ranging from three to six months of rental in the form of bank guarantees. AIMS APAC REIT also said that its exposure to the company will be reduced as the leases expire, with the final lease ending in July 2021.

 

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