Far East Hospitality REIT enters $22.09m sustainability-linked facility agreement

"Change of Control" may trigger repayment of the facility.

Far East Hospitality REIT has entered into a $22.09 (JPY2.4b) sustainability-linked facility agreement with an institutional bank on 16 April.

Under the terms of the facility agreement, specific conditions restrict changes to the manager of Far East H-REIT and ownership of the REIT Manager. The lender may require repayment of the facility if a "Change of Control Event" occurs.

Such events include if the REIT Manager is no longer majority owned by the Far East Organization group or the estate/family of the late Ng Teng Fong, without prior consent from the lender; if the Far East Organization and/or the Immediate Family Members cease to own at least 30% of the stapled securities in Far East Hospitality Trust, unless approved by the lender; or if the REIT Manager resigns or is removed, unless the replacement manager is majority owned by the Far East Organization or the immediate family members, or the lender gives prior consent.

If a "Change of Control Event" occurs, it could lead to a cross-default on other borrowings of Far East H-REIT, affecting approximately $746.9m (excluding interest and fees).

As of this announcement, no conditions have been breached.