Saizen REIT's former property, Clair Court, when it was still a residential REIT. (Photo: Saizen REIT)Saizen REIT's former property, Clair Court, when it was still a residential REIT. (Photo: Saizen REIT)

Singapore-listed residential REIT, Saizen REIT (SGX:T8JU), announced on 3 March that it has received conditional approval for the continued trading of its securities on the Singapore Exchange (SGX) even after it completes the disposal of its assets to Triangle TMK.

SGX’s minimum trading price requirement will also not apply to Saizen REIT upon it becoming a cash trust once the assets are disposed, said the REIT.

Saizen REIT had on 1 March obtained the majority of its unitholders approval to dispose off all its properties to Triangle TMK, a Japanese affiliate of Lone Star Funds, for JPY44.66 billion (SGD514.1 million).

Among requirements of the conditional approval for the continued trading is that directors of the REIT’s manager, chief executive officer and other associates are to observe a moratorium on the transfer or disposal of all their units in Saizen REIT.

This moratorium will apply for the period commencing from the date on which unitholders’ approval for the disposal is obtained, up to the completion date of the acquisition of a new business by Saizen REIT which is able to satisfy the requirements for a new listing.

The REIT’s manager will also need to provide a monthly valuation of its assets and utilisation of cash, and quarterly updates of milestones in obtaining a new business via a filing with the SGX, and maintain a deposit of not less than SGD311.2 million in an escrow account.

Units of Saizen REIT last changed hands on the Singapore Exchange at SGD1.10.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.