Saizen REIT clarifies ‘tighter credit conditions’ comment

Saizen REIT Executive director Raymond Wong’s comments about Japan crisis leading to tighter credit conditions were of a general nature, said the company in a statement Wednesday.

Saizen REIT said the comment did not refer to any delay in refinancing a loan that its subsidiary, YK Shintoku, had defaulted on.

It also said it has never indicated any timeline for the resolution of the YK Shintoku loan default.

The REIT’s statement was in response to a 16th March article in Business Times, titled “Saizen faces delay in replacing default loan.”

The article also said that a loan taken by GK Choan, which operates some of Saizen’s properties in Japan, might default if there was excessive damage suffered on its properties.

The company clarified that out of the 38 properties under the GK Choan portfolio, 30 are outside the areas affected by the earthquake and the tsunami.

Out of the remaining eight that are in the affected areas, seven have been viewed and appear to have suffered only minor damage. Only one property, representing 0.2 per cent of Saizen REIT’s investment property value, remains to be viewed, Saizen said in its statement.

Units in Saizen REIT were unchanged today after losing more than a fifth of their value over the past three trading sessions. Earlier today, the REIT had called for a trading halt prior to the release of its clarification.

Source : Channel NewsAsia – 16 Mar 2011

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