Dasin Retail Trust (DRT) has decided to terminate the commercial and property management agreements with Foshan Shunde Dasin Metro-Mall Commercial Management Co., Ltd. and Zhongshan Yuanteng Commercial Property Management Co., Ltd., announced the trustee-manager late on Oct 15.
Foshun Shunde and Zhongshan Yuanteng are the rental management companies of Shunde Metro Mall and Tanbei Metro Mall. DRT’s trustee-manager says it intends to terminate the agreements when they expire on Oct 31. The agreements were entered into on Oct 31, 2022.
However, DRT’s minority directors, Zhang Zhencheng and his alternate, Zhang Zhongming, have not voted in the resolution to terminate the agreements. According to DRT, it believes that Zhencheng and Zhongming are “conflicted” due to several reasons including the properties having a “significant amount of outstanding receivables” in spite of the services that were supposed to be performed by DRT’s incumbent managers, which are associates of Zhengcheng and Zhongming.
“The board (excluding [the] minority directors) are of the view that the minority directors are conflicted in matters referred to in this announcement,” says DRT’s trustee-manager in its Oct 15 statement.
DRT acquired Shunde Metro Mall and Tanbei Metro Mall in July 2020 for an agreed property value of $375 million or RMB1.95 billion. At the time, the acquisition expanded DRT’s portfolio valuation to RMB12.1 billion from RMB4.6 billion.
Units in DRT closed 0.1 cent lower or 2.63% down at 3.7 cents on Oct 15.
