Company Briefs: FSL Trust

FSL Trust

First Ship Lease Trust (FSL Trust) has sold a chemical tanker for US$13.8 million (S$18.3 million) to help cut its debt.

Net proceeds from the disposal will be used in full to repay an outstanding loan facility in the first quarter of the fiscal year 2018, the trustee-manager said.

It added that FSL Trust will record a related impairment charge of about US$9 million in the fourth quarter of 2017.

FSL Trust had applied to the Singapore High Court for a scheme of arrangement last month, proposing a one-year extension to a syndicated loan facility that has some US$165.6 million outstanding.

Mr Roger Woods, chief executive of the trustee-manager, said the sale of the vessel - FSL Tokyo - will further reduce the debt due under the syndicated loan facility.

"The amount outstanding under the facility following the application of the sale proceeds of FSL Tokyo will be US$138 million, which represents a very significant reduction from the debt outstanding in June 2013 of US$425 million, when there were significant changes in the trust's board and management," he said.


Mapletree Greater China Commercial Trust (MGCCT) is expanding its investment mandate to include Japan.

The expansion will allow MGCCT to better diversify its portfolio and enhance its ability to provide balanced and long-term returns for unit holders.

"Japan has one of the largest and well-established commercial property markets in Asia-Pacific, with attractive investment characteristics," said the manager, adding that the broadening of its investment mandate will build on its track record of operating a portfolio of high-quality income-generating commercial assets in Hong Kong, Beijing and Shanghai.

First Reit

First Real Estate Investment Trust (First Reit) has secured up to $400 million in syndicated secured financing facilities from OCBC Bank, its manager Bowsprit Capital Corporation said.

The facilities consist of a three-year, four-year and five-year Singapore dollar term loan facility, as well as a three-year dual currency revolving credit facility available in Singapore or US dollar.

The quantum of each facility is up to $100 million. The facilities will be used to partially refinance outstanding bank loans, fund property investments as well as meet working capital requirements, said the Reit manager's chief executive, Mr Victor Tan.

A version of this article appeared in the print edition of The Straits Times on January 17, 2018, with the headline 'Company Briefs'. Print Edition | Subscribe