Former Sabana REIT director, unitholders call for EGM for asset price discovery

The view was the possible sale of the reit’s assets.

The manager of Sabana Industrial Real Estate Investment Trust announced that it has received a requisition notice to convey an extraordinary general meeting from unit holders owning 10% of the trust led by its former director Chan Wai Kheong.

In a letter, said the purpose of the EGM was to commence and undertake a price discovery process ‘with a view to achieving a possible sale of all or majority of the assets of Sabana Reit’.

The letter also said that an ‘international reputable firm of property consultants with a track record of selling Singapore industrial properties’ should undertake the price discovery process. The fees should also be based on market rates and should be paid to the IPC on a success basis upon completion of the sale.

Reimbursable out-of-pocket expenses should also be kept at a maximum of $8,000.

The price discovery should also be completed within the period of three months, extendable by one month upon passing of the resolutions during the EGM.

According to the letter, the rationale behind the resolutions was because of the ‘significant cost’ Sabana Reit incurred with its internalisation. The letter also pointed out that the manager and trustee have incurred cumulative expenses of $10.19m.

The letter also cited the poor performance of the Reit’s unit price and DPU and Sabana Reit’s poor trading liquidity.

Sabana Reit’s manager said it is considering the requisition notice and consulting with the trustee and seeking legal advice.