Vibrant Group to sell Sabana REIT stake

The net proceeds will be used to conduct a partial redemption of the Series 003 $66m 7.5% notes due 2020.

Investment holdings firm Vibrant Group and its subsidiary Singapore Enterprises (SEPL) is looking to sell 51% of its shares in Sabana Investment Partners (SIP) to InfinitySub for $20.46m, with an adjustment sum of $1.35m, a filing with the Singapore Exchange (SGX) revealed.

Vibrant also reportedly entered into another sale and purchase agreement with InfinitySub, a wholly-owned subsidiary of E-Shang Infinity Cayman, which agreed to purchase 68.6 million units in Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) for approximately $32.9m.

Sabana REIT has a market cap of $431.76m as at 21 May, Vibrant highlighted. Listed on the SGX in 2010, Sabana REIT was established principally to invest in income-producing estate and real estate-related assets. The portfolio of properties comprises high-tech industrial park, chemical warehouses, as well as general and logistics warehouse facilities.

A third agreement will see Vibrant selling 1.48% or 15.61 million total issued units to E-Shang Infinity for about $7.49m.

The transactions will enable Vibrant to realise the value of its investments in SIP and Sabana REIT, which will in turn allow the group to redeploy its capital, reduce debt and to focus on its main business of providing integrated logistics solutions and freight and logistics services, along with the group's other lines of business in real estate and financial services.

The net proceeds of the transactions are expected to be $21.75m for the sale of 51% of the entire issued and paid-up capital of SIP, and $40.37m for the sale of approximately 8% of the total issued units of Sabana REIT.

“The net proceeds will be used to reduce the group's existing indebtedness, and enable the group to consolidate its revenue streams,” Vibrant highlighted.

The firm also said it intends to utilise the net proceeds from the sale shares transaction to conduct a partial redemption of the Series 003 $66m 7.5% notes due 2020, and the net proceeds from the sale units transaction to repay an existing banking facility the company has obtained from United Overseas Bank (UOB) to reduce the group's indebtedness.