Sabana REIT survives unitholder revolt

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A resolution to remove the manager of Sabana REIT at an extraordinary general meeting (EGM) has failed.

The EGM, which was conducted on 28 April to address demands of a group of unitholders who have issued the REIT with a requisition letter, was held on 28 April at the Suntec City Convention & Exhibition Centre.

The unitholders who issued the requisition letter are generally unhappy with the REIT’s performance, and are calling for a change in its management team.

Amid falling DPUs in successive quarters, doubts have also been cast over the REIT’s recent acquisitions, valuation methods, and compensations to the manager.

Among resolutions tabled at the EGM included one to remove Sabana Real Estate Investment Management Private Limited, led by Kevin Xayaraj, as manager of the REIT.

According to information provided to REITsWeek, this first resolution failed to pass with 117,602,660 votes (30.52%) for, and 267,741,918 votes (69.48%) against.

Another extraordinary resolution, which seeks to direct the orderly winding-up of Sabana REIT in the event that the first resolution fails to pass, also fell through with 109,469,518 votes (28.33%) for, and 276,892,688 votes (71.67%) against.

Units of Sabana REIT are currently halted from trading on the Singapore Exchange pending formal announcement of results from the EGM.

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About Author

Ridzwan Rahmat has been analysing Singapore-listed REITs and business trusts, since 2008. For disclosure purposes, Ridzwan is currently vested in Mapletree Greater China Commercial Trust, Mapletree Industrial REIT and Mapletree Logistics Trust.

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