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To appease investors unsatisfied with the performance of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT), its sponsor and manager have started undertaking a strategic review of the trust.
In an SGX filing on Thursday (2 February), its sponsor Vibrant Group and manager Sabana Real Estate Investment Management jointly stated that the scope of the move will encompass the existing shareholding structure, the quality of governance by the manager, as well as the trust’s strategic direction and business.
“The sponsor and the manager are considering all options to further the sustainable growth of Sabana REIT and the interest of its unitholders,” they said.
Last month, the shareholders wanted to convene a meeting to replace the present manager due to its poor performance, as Sabana REIT was outperformed by its peers over the last three years. The unitholders were so dissatisfied to the point that they were even considering to liquidate the trust, reported the Business Times.
To appease investors, the manager promised to improve the trust’s distribution per unit (DPU) by reducing costs and disposing underperforming properties.
Sabana REIT currently owns 21 industrial properties in Singapore collectively valued at approximately $1 billion. Its largest unitholders are Vibrant Group and associated entities, which have a combined 12 percent interest in the trust and a 51 percent indirect stake in the manager. They also represent the trust’s biggest tenant, leasing around 665,446 sq ft of space, or 15.1 percent of the trust’s overall gross floor area (GFA), and account for 17 percent of its net property income.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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