Sabana Industrial REIT (Sabana REIT) has filed its defence against a tenant's counterclaims.
The defence was filed on 28 December in the High Court of Singapore, the REIT announced on the same day.
Sabana REIT first disclosed on 19 December that it has been served with a counterclaim from the delinquent tenant, which is in arrears over its rent.
The tenant currently occupies the REIT’s premises at 33 & 35 Penjuru Lane.
This tenant, Kleio One-Solution Pte Ltd, owes about SGD2.1 million in rent and related charges.
The tenant accounts for about 2.9% of Sabana REIT’s gross rental income.
In light of these delinquencies, Sabana REIT has commenced legal action seeking the amount owed, and a repossession of the asset.
Relevant announcements on the matter will be made as and when there are material developments, the REIT added.
Sabana REIT was last done on the SGX at SGD0.405, which presently implies a distribution yield of 7.95% according to data on the Singapore REITs table.