AllCo – BT

Allco Reit says debt extension approved

Singapore-listed Allco Commercial Real Estate Investment Trust said on Thursday it has received in-principle approval for a 17-month extension of the maturity date for $550 million (US$396.5 million) of its debt.

The Reit’s manager ‘is currently reviewing the terms and conditions of the extension and will execute binding documentation as soon as practicable,’ it said in a statement, adding that the due date has been extended from July 31 this year to end-December 2009.

Allco Reit said that another $70 million of debt due to mature on 22 November this year will be repaid in full with the proceeds from its sale of the Allco Wholesale Property Fund.

Allco Reit, which owns malls and offices in Singapore and Australia, late on Wednesday announced the resignation of three directors appointed by parent Allco Finance Group so that the board will have a majority of independent directors.

Moody’s Tuesday downgraded Allco Reit’s rating to Ba2 from Ba1 and said the rating ‘remains on review for further possible downgrade’.

That followed a a failed legal attempt by the Reit to stop Moody’s from downgrading its shares as that would have complicated the trust’s fundraising efforts. — REUTERS