ST : MapletreeLog files bankruptcy petition over lease default

Feb 9, 2010

MapletreeLog files bankruptcy petition over lease default

THE manager of Mapletree Logistics Trust (MapletreeLog) has filed a bankruptcy petition against Mr Ang Chee Seng for defaulting on a lease agreement.

Mr Ang is the guarantor and company director of Elchemi Assets, which used to occupy the industrial property at 9 Tampines Street 92.

A MapletreeLog Management statement yesterday said that it has repossessed the property - a two-storey warehouse with an ancillary office - and is marketing it for lease.

It has a net lettable area of 11,089 sq m and accounts for only about 0.5 per cent of the total net lettable area of MapletreeLog's portfolio as at Dec 31 last year.

The bankruptcy petition will be heard on March 4, the manager of the logistics real estate investment trust said.

Elchemi apparently started its lease in end-2008 and has not paid rent for a few months.

MapletreeLog Management said it has obtained summary judgment against the former tenant and Mr Ang, and that the matter is under appeal to be heard on Thursday.

It bought the property, which has a 30-year lease from 1993 with an option to extend, for $11 million in early 2007.

Elchemi Assets is part of the Singapore-headquartered Elchemi Group, a private global investment firm established in 2008, according to the group's website.

The company develops high-tech value-added facilities for lease to corporate customers, said the website.