EC World REIT: Auditors cite material uncertainty on refinancing

EC World REIT's Stage 1 of Bei Gang Logistics, which comprises eight buildings, located in North Hangzhou, China. It is one of the largest e-commerce developments in the Yangtze River Delta. Credit: EC World REITEC World REIT's Stage 1 of Bei Gang Logistics, which comprises eight buildings, located in North Hangzhou, China. It is one of the largest e-commerce developments in the Yangtze River Delta. Credit: EC World REIT

EC World REIT‘s independent auditors, PricewaterhouseCoopers, have cited a material uncertainty over the REIT’s ability to refinance existing borrowings before they become due for repayment, the REIT said in a filing to SGX Tuesday. 

However, the REIT said both its onshore and offshore teams were in the final stages of negotiation on refinancing loans due this year. 

“The manager is confident that the refinancing exercise will be completed prior to the maturity dates of the term loans,” the REIT said. “The manager would like to highlight that the audit opinion in the independent auditors’ report remains unqualified.”

The auditors’ report highlighted that the current liabilities of the group exceeded current assets by S$541.83 million. 

EC World REIT had borrowings from financial institutions of S$708.31 million as of end-December, classified as current liabilities as it is due for repayment in May and July of this year, according to the annual report. 

The liabilities include an onshore facility of S$180.68 million, an offshore facility of S$415.78 million and revolving credit facilities of S$111.85 million, according to the annual report.

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