EC World REIT said Monday its Fu Zhuo Industrial property is being expropriated — or compulsorily acquired — by the government of Linping District, Hangzhou City, in China, for the development of Hangzhou’s Grand Canal National Cultural Park.
Fu Zhou Industrial is a port property, with berths and office buildings, located on the east bank of the Beijing-Hangzhou Grand Canal, the filing said.
EC World REIT’s fiscal third-quarter results said the property was fully occupied by two tenants. The gross rent received from the property in 2020 was around 7.70 million yuan, according to the 2020 annual report.
The annual report said the land tenure expiry was set for 2055.
The filing on Monday said the latest valuation, at end-2020 by Savills Real Estate Valuation (Guangzhou) Ltd – (Shanghai Branch), valued the property at 117 million yuan, accounting for 1.45 percent of the REIT’s total portfolio.
EC World REIT, in accordance with the notice received from the government on 6 January, is entitled to compensation based on the expropriation value, the filing said, adding the REIT’s manager is discussing the details, including compensation, with the authorities.
The target date for vacating the property is end-March, the filing said.