SINGAPORE - Singapore-listed property trust Saizen REIT said on Tuesday it had defaulted on 7.253 billion yen ($112.4 million) commercial-backed securities loan.

The company said in a statement 'maturity default' was not expected to affect Saizen REIT's ability to operate as a going concern nor impair its ability to obtain further financing from financial institutions.

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

A maturity default occurs when the borrower fails to pay the lender the balloon payment, or principal balance, at maturity.

'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,' Saizen said in a statement.

The loan, known as 'YK Sintoku', is a non-recourse and not cross-collateralised against other properties in Saizen REIT's portfolio. It was originally provided by Credit Suisse Principal Investments Ltd, a unit of Credit Suisse , in 2005 and was later securitised and transferred to an issuer of the commercial-mortgage backed securities, the statement said.

Saizen, which was listed in November 2007, is the only Singapore-listed real estate investment truist with purely Japanese regional residential properties.