Sabana REIT to hold EGM on the removal of its manager

The REIT's unitholders will convene on 7 August.

Sabana Industrial Real Estate Investment Trust has called for an extraordinary general meeting (EGM) on 7 August for unitholders to vote on two resolutions, including the removal of Sabana Real Estate Investment Management (SREIM) as the REIT’s manager (Resolution 1).

The REIT will hold its EGM on 7 August in a wholly physical format at Hope@New Tech Park, 151 Lorong Chuan, #02-06 (Lobby F) at 10 AM.

Quarz Capital, which requisitioned the EGM, also proposed that the REIT’s Trustee be “directed to, among others, affect the internalisation by incorporating a wholly-owned subsidiary which would act as the manager of Sabana Industrial REIT” (Resolution 2).

The REIT will also discuss Resolution 2 during the EGM.

In a statement, the REIT’s Board of Directors has urged unitholders to vote against the two resolutions, saying that both would be “prejudicial to the interests of Sabana Industrial REIT and its unitholders as a whole.”

“In the interest of transparency, Unitholders should note that as the Manager is the subject of both Resolution 1 and Resolution 2, the Directors of the Manager may be affected by the outcome of the Resolutions as the passing of the Resolutions could result in the removal of the Manager, which may then result in the cessation of their appointments as Directors of the Manager,” 

The REIT’s board added that SREIM is the subject of both resolutions, which means that the directors of SREIM “may be affected by the outcome of the resolutions.”

“The passing of the resolutions could result in the removal of the Manager, which may then result in the cessation of their appointments as Directors of the Manager,” the board added.

Meanwhile, the REIT also laid out three possible outcomes for the resolution:

Outcome 1: If Resolution 1 and Resolution 2 are passed, further steps will still be required to effect the removal of SREIM as the manager of Sabana Industrial REIT as well as for the implementation of the Internalisation.
 
Outcome 2: If Resolution 1 is passed but Resolution 2 is not passed, further steps will still be required to effect the removal of SREIM as the manager of Sabana Industrial REIT.
 
Outcome 3: If Resolution 1 is not passed and only Resolution 2 is passed……Given the potentially conflicting directions from Unitholders, the Trustee may have to take steps to resolve the conflicting directions, including convening further extraordinary general meetings of Unitholders to seek further directions from Unitholders, before the Trustee may proceed to implement the Internalisation.