PAG Real Estate has called on the Hong Kong authorities to take “appropriate action” against Spring REIT for what it believes are "misleading statements” made in a circular issued to announced an extraordinary general meeting (EGM).
PAG Real Estate controls two special investment vehicles, BT Cayman Ltd and Spirit Cayman Ltd, both of which are substantial unitholders of Spring REIT.
The two investment vehicles collectively hold 157,150,000 units of Spring REIT, which represents a stake of about 12% in the REIT.
In August 2017 PAG Real Estate, through these investment vehicles, issued a notice of requisition to Spring REIT to convene an extraordinary general meeting (EGM), during which a resolution to remove its manager will be tabled.
“As substantial unitholders of Spring REIT, we have been deeply disappointed with the persistent unit price underperformance, which we feel in part results from the lack of a clear strategy for Spring REIT articulated and executed by Spring Asset Management Limited [the REIT’s manager]”, a paragraph in the requisition letter read.