Date: January 24, 2017
In addition, unitholders should take note that some loan covenants could provide that, in the event of a change in manager, it could trigger the loan to be recalled and this needs to be adequately addressed before any change of REIT manager.
Unitholders should also be aware that one of the proposed resolutions calls for the winding up and /or divestment of all properties in the Sabana REIT portfolio should the proposed REIT manager not be approved by the authorities. In this current economic conditions, unitholders may lose out with a divestment.
SIAS regrets that management has not addressed the concerns of unitholders earlier and for the situation to deteriorate to point where unitholders feel the need to replace REIT manager or liquidate the REIT. SIAS calls on the Sabana REIT to address the concerns of unitholders adequately, put forth a detail plan to avoid liquidation of the REIT and resolve the issues to the satisfaction of unitholders.
David Gerald
Founder, President & CEO
Securities Investors Association (Singapore)
