Sabana REIT's property near Serangoon, New Tech Park. (Photo: REITsWeek)

Sabana REIT is seeking legal advice with regards to a requisition notice it received from two institutional investors.

The REIT had on 10 November received the notice from Quarz Capital Management and Black Crane Capital.

The two companies collectively hold more than 11% of the total number of Sabana REIT units in circulation.

The requisition notice requests the manager of Sabana REIT to convene an extraordinary general meeting (EGM) to consider several resolutions.

These resolutions urge Sabana REIT’s manager to clarify several issues, including the reasons behind the hiring of three ex-ESR employees within its fold.

Sabana REIT and ESR-REIT are in the process of seeking unitholders’ approval to merge.

The approval will be sought at an EGM, which is expected to be convened on 4 December.

Quarz and Black Crane have opposed this union, citing unfavourable merger terms for Sabana REIT.

They have also reiterated the intention to vote against the proposed merger at the impending EGM.

Related: Quarz Capital positions for battle in ESR-REIT, Sabana REIT merger deal

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.