Friday 29 Mar 2024
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SINGAPORE (April 28): Unitholders of Sabana REIT this morning voted against removing its underperforming REIT manager at its Extraordinary General Meeting, but also voted against a general mandate at its Annual General Meeting.

At the EGM which was called by 66 unitholders holding 0.6% of the units, 69.5% of unitholders voted against Resolution 1 which called for the removal of Sabana REIT Management (SREIM).

This then led to Resolution 4 which called for the winding up of the REIT in the event Resolution 1 is not passed.

Again, 71.7% of unitholders voted against Resolution 4.

At the AGM, unitholders voted against Resolution 3, otherwise called the general mandate.

Votes for the mandate stood at 45.6% for and 54.4% against.

The mandate gives authority to the manager to issue new units by way of rights, bonus or placements, or make offers or undertake agreements or options that would require units to be issued including warrants, debentures or convertible instruments.

Without the general mandate, the manager is virtually hamstrung. This also means its plan to acquire a four-storey light industrial building at 47 Changi South Ave 2 from its sponsor will also have to be aborted.

Interestingly, If unitholders had voted against the general mandate last year, the manager would not have been able to call for a dilutive rights issue last December.

Resolution 1, which was to pass the audited accounts, and Resolution 2, to re-appoint the auditors, passed with around 85% votes.

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