Sabana REIT manager mulling proposed changes to EGM resolutions after court ruling

It is also seeking legal advice.

Sabana Real Estate Investment Management Pte. Ltd. said it is looking into Quarz Capital’s proposed revisions to the resolutions following the issuance of a court ruling regarding internalisation of the manager function. 

Last week, the Singapore High Court ruled that trust deed amendments are required to effect the internalisation. It also prohibited ESR from voting on the changes. 

In line with this, the extraordinary general meeting (EGM) requisitionists proposed amendments “with the intention for Sabana unitholders to provide clarity to the Trustee and expedite the Internalisation process which is in line with the Trustee’s stated intention in its 24 May Update.”

“This is ultimately in the best interest of and highly beneficial to all Sabana unitholders,” they added.

Among Quarz Capital’s proposed revision was amending the trust deed, as required by the Court, for the first resolution. The requisitionists laid out certain dealing conditions with related corporations of the manager.  

“The passing of this resolution will enable the Trustee to be able to incorporate and fund the Internal Manager which will be owned by all Sabana unitholders,” they said. 

For the second resolution, the requisitionists cited the internalisation timetable, which states that the establishment of the entity for the new internalised manager should begin by the second quarter of 2024. They propose the internal manager be incorporated within one month from the passing of the first resolution. 

Quartz Capital also seeks to amend the third resolution to order the trustee to submit the licensing application for the internal manager within one and a half months from the passing of the first extraordinary resolution.

The requisitionists also want to withdraw the sixth resolution as the Court deemed it “unnecessary to effect internalisation.”

“We are appreciative of the Trustee’s work and would like to reiterate that the EGM is the internal democratic process, in where unitholders can discuss, deliberate and resolve tabled proposals on how to proceed with Internalisation. We therefore ask that the EGM proceeds without any change of the existing timeline,” Quartz Capital said.