Saizen REIT discloses defaults on loan

Saizen REIT, a Singapore-listed property trust, said Tuesday it had defaulted on a commercial-backed securities loan amounting to 7.253 billion yen.

"Maturity default” was not expected to affect the ability of Saizen REIT to operate as a going concern nor weaken the company’s ability to attain further financing from financial institutions, said the company in a statement.

“The main impact of this maturity default is an increase in the interest rate from 3.07 percent to a default rate of 7.07 percent per annum," it said.

Listed in November 2007, Saizen is the sole Singapore-listed real estate investment trust that has purely Japanese regional residential properties.