The manager of Hong Kong’s Spring REIT has agreed to convene an extraordinary general meeting (EGM) amid demands from the REIT’s substantial unitholders to do so.
In late August 2017, the embattled REIT received a notice of requisition from two substantial unitholders to convene an EGM, during which a resolution to remove the REIT’s manager will be tabled.
“After consideration of the request letter, the manager wishes to advise unitholders that it intends to convene an EGM, where the subject matter of certain resolutions requested under the request letter, including the proposed resolution to remove the manager, will be considered.
Further details of the EGM, including the resolutions to be proposed, will be set out in a circular to unitholders that will be published on or before 26 October 2017.
“The subject matter of the resolutions may have serious consequences in respect of Spring REIT, and therefore, unitholders and potential investors of Spring REIT are advised to exercise caution when dealing in the units”, said the REIT in its announcement.
PAG Real Estate, which owns investment vehicles that are substantial unitholders in Spring REIT, has described the move as one that would ultimately “unlock Spring REIT’s trapped value”.