A campaign by a group of unitholders to end three controversial property purchases by Sabana REIT has succeeded after it was announced on 21 July that the acquisition of 72 Eunos Avenue 7 will now be shelved.
The six-storey light industrial building was supposed to have been acquired by Sabana REIT from the vendor, Singapore Handicrafts Pte Ltd, for SGD20 million (USD14.6 million).
In a filing on the Singapore Exchange made shortly after 11 pm on 21 July, Sabana RET disclosed that certain conditions precedent to the property’s acquisition, which had to be fulfilled by 20 July 2017, have not been met.
“In this regard, the [REIT’s] manager through its solicitors has informed the vendor via their solicitors that Sabana REIT would not be proceeding with the acquisition”, the REIT announced.
72 Eunos Avenue 7 is the last of three proposed acquisitions deemed contentious by a group of Sabana REIT unitholders, who questioned valuation methods that have been applied to appraise the properties.
Two other proposed acquisitions for properties located in Changi South and Eunos Avenue 3 were terminated earlier in the year in the aftermath of an extraordinary general meeting (EGM) that had come about partly due to investor disconsolateness over the acquisitions.