SINGAPORE (THE BUSINESS TIMES) - EC World Reit has received a notice of compulsory expropriation of Fu Zhuo Industrial, a port property located in Hangzhou, China, its manager said on Monday (Jan 10).
The government of Linping district in Hangzhou had issued the real estate investment trust (Reit) with the notice on Jan 6 for the development of the Grand Canal National Cultural Park in Hangzhou.
Fu Zhuo Industrial is located on the east bank of the Beijing-Hangzhou Grand Canal, in the west of Chongxian New City in Hangzhou.
The manager said the Reit is entitled to receive compensation based on the expropriation valuation of Fu Zhuo Industrial in accordance with the notice. This includes the property's land use rights, buildings and equipment.
Fu Zhuo Industrial - a port property comprising berths and office buildings - has a total land area of 24,403 sq m and a total net lettable area of 7,128 sq m. It has a remaining lease tenure of 34 years.
It is owned by Hangzhou Fu Zhuo Industrial, which is in turn wholly owned by EC World Reit, and has a valuation of 117 million yuan (S$25 million) as at Dec 31, 2020, representing 1.5 per cent of the Reit's whole portfolio.
The target date of vacating the property is March 31.
The Reit's manager said it has engaged the relevant authorities to discuss the details of the compulsory expropriation, including the details of compensation, and will provide further updates once available.
Units of EC World Reit closed flat at 76 cents last Friday.