“The Trustee-Manager has been working closely with the Lenders for the refinancing exercise and exploring potential proposals including but not limited to the disposal of the certain trust assets, partnership with strategic investors, and alternative fund raising activities. The Trustee-Manager hopes to see a successful conclusion to the refinancing exercise soon,” Dasin’s manager said.
In March this year, Dasin’s manager said it is in talks to divest Shiqi Metro Mall and Xiaolan Metro Mall to an entity linked to one of the trust’s substantial shareholders. The two malls, last valued at RMB4.8 billion, account for 42.8% of total assets by value. Both malls are located Zhongshan of China’s Guangdong province. The potential buyer Wuhu Yuanche Bisheng Investment Center, is described by Dasin’s manager as a buyout fund with institutional and private investors. The potential buyer will be managed jointly by GSUM Real Estate Fund Management Co and a subsidiary of Sino-Ocean Capital Holding, which in turn is a substantial unitholder of Dasin Retail Trust via its affiliate, Glory Class Ventures, which holds a stake of around 11.99% as at May 4.
On June 3, an SGX filing showed Harvest Private Wealth Thematic Fund increased its stake to 8.45% on June 2.
Dasin Retail Trust is a business trust styled with similar frameworks as a REIT. It pays out 90% of its distributable income, and keeps its aggregate leverage below 50% if interest coverage ratio (ICR) is above 2.5%, and below 45% if ICR is below 2.5%.
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Based on its historical distribution per unit of 5.22 cents paid in FY2021, and NAV of $1.41, the buyer of the 50 million block is getting a yield of 16%, and paying just 0.25 times NAV.
