SABANA Industrial Real Estate Investment Trust’s (Sabana Reit : M1GU 0%) trustee said it will “work expeditiously” to convene an extraordinary general meeting (EGM) for unitholders to approve proposed amendments to the trust deed.
Such amendments are deemed necessary to effect the internalisation of its management function and the EGM will “provide clarity and certainty” for unitholders, said HSBC Institutional Trust Services on Wednesday (Jun 12).
An EGM will also facilitate the progress of workstreams previously delayed due to various uncertainties, said the trustee, adding that it was a “logical and necessary next step in the internalisation process”.
The trustee’s intended EGM, however, differs from a separate EGM called for by requisitionists in a Jun 6 letter, where Sabana Reit’s manager previously noted “entirely new and different resolutions” proposed as compared to an earlier May 29 letter.
As of Wednesday, HSBC Institutional Trust Services noted that the manager was in the process of considering these latest requisitioned resolutions and seeking legal advice.
Should the manager decide to convene an EGM to table these resolutions, the trustee said it will endeavour to table other resolutions relevant to the internalisation – including those from its own intended EGM – at the requisitionists’ EGM.
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Being able to consider all resolutions at a combined EGM in a “holistic, orderly and efficient manner” would be in the interests of all unitholders, added HSBC Institutional Trust Services.
Additionally, the trustee established a new wholly owned entity for the purposes of acting as Sabana Reit’s internalised manager.
Remaining outstanding workstreams include identifying and continuing to engage with qualified candidates whom the trustee intends to propose as directors and senior management of the new manager, as well as formulating a funding and operational model for the manager.
Upon finalising these two workstreams, the trustee intends to apply for a capital markets services licence for the new internalised manager.
Units of Sabana Reit were trading S$0.005 or 1.4 per cent higher at S$0.355 as at 9.38 am on Wednesday, after the statement was released.
