Sabana Industrial REIT Internalisation Committee rejects EGM resolutions

They called it a ‘waste of unitholders’ money’.

Sabana Industrial REIT’s Internalisation Committee and its incoming directors intend to vote against all resolutions in an extraordinary general meeting (EGM) requisition filed on 17 January, urging Sabana unitholders to do the same, according to a statement.

“The ICDE (Internalisation Committee and Directors Elect) is surprised by the requisition filed by certain unitholders and published on 17 January 2025 to vote on resolutions including a proposal to commence and undertake a price discovery process aimed at a potential sale of all or the majority of Sabana REIT’s assets,” the statement said.

ICDE said that Sabana REIT already engages reputable and independent valuers annually to undertake a fully independent valuation of its property portfolio, providing a well-established and credible starting point for evaluating any potential sale of the entire portfolio or parts of it.

The last valuation was done as of 31 December 2024 by Jones Lang LaSalle Property Consultants and CBRE.

“To requisition an EGM to do the same valuation again less than 1 month later is a complete
waste of unitholders’ money if we assume the requisitionists agree that any potential sale
should be done at NAV or above,” the statement said.

ICDE said that once the new internal manager is approved and takes over from the current manager, the it plans to potentially consider a range of strategic options to maximise value for Sabana unitholders, including the sale of the entire portfolio.

On 17 January, former Sabana Industrial REIT director Chan Wai Kheong and other unitholders who in total owned 10% of the trust wrote a letter to requisition an EGM.

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.