The unit price of EC World REIT fell by as much 21% in the first half of the trading session on 3 July.
The plunge came after revelations that the REIT manager’s chief investment officer (CIO) is now being investigated by the Commercial Affairs Department (CAD) of the Singapore Police Force.
The REIT fell to an intra-day low of SGD0.52 at about 9.30 am, before recovering to SGD0.61 by the mid-day break on the Singapore Exchange (SGX).
According to EC World REIT, the investigations pertain to Section 20 of the Criminal Procedure Code.
The CIO, Li Jinbo, has been interviewed by the CAD in connection with the investigation, and he is now on a leave of absence pending the outcome of the investigations.
The REIT will review his appointment when there is sufficient information made available, said its manager.
CAD indicates that EC World REIT and the manager are not under investigation.
The business and operations of EC World REIT have not been affected as the manager’s CEO, Goh Toh Sim, has been overseeing the investment and asset management functions.
Goh will continue to actively perform these functions.