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EC World Real Estate Investment Trust ANNUAL REPORT 2016
B.
UPDATE ON THE USE OF THE IPO PROCEEDS
The Manager had disclosed in the Prospectus its estimated allocation of the use of the IPO Proceeds, and the
Manager wishes to update ECW Unitholders on ECW’s utilisation of such proceeds:
Amount allocated Amount utilised
Balance
Uses
(S$’000)
(S$’000)
(S$’000)
Acquisition of PRC Property Companies
231,003
230,128
875
Repayment of existing loans
205,908
205,908
–
Redemption of units
545,936
545,936
–
Payment of initial paid-in capital
11,545
11,429
116
Transaction costs
29,597
26,595
3,002
Offshore interest reserve requirement
3,798
3,798
–
Working capital
6,060
9,628
(3.568)
Capital expenditure
1,846
1,846
–
Total
1,035,693
1,035,268
425
The breakdown on the use of IPO proceeds for the working capital is as follows:
Amount utilised
Specific uses
(S$’000)
Interest expenses
1,913
Distribution for the period from 28 July 2016 (Listing Date) to 30 September 2016
7,715
Total
9,628
The Manager will make further announcements via SGX-ST on the utilisation of the remainder of the IPO Proceeds
as and when such funds are materially disbursed.
C.
UTILISATION OF THE SECURITY DEPOSITS
The Group has received security deposits of RMB301.7 million (equivalent to S$62.8 million) from the Master
Lease tenants. As announced on 30 September 2016 and 14 October 2016, the Manager had decided to set aside
the security deposits to part-finance the potential acquisition of an asset, instead of using the security deposits
to invest in the PRC corporate bonds, after taking into account the current volatile PRC corporate bond market.
At the reporting date, there are reasonable grounds to believe that ECW and the Group will be able to repay the
security deposits at the end of the term of the Master Leases.
ADDITIONAL
INFORMATION