HSBC Institutional Trust Services (the Trustee) has made an Order 32 application with the High Court. Order 32 allows for an action to be brought in the Singapore courts for the determination of any question arising in the execution of a trust (including Sabana Industrial REIT).
Separately, on March 25, Quarz Capital Asia requisitioned for a third EGM in a year. The original seven resolutions were amended/ changed to six, and posted on SGXnet on April 19. The first resolution is to direct the Trustee NOT to amend the Trust Deed related to authorising Sabana Industrial REIT to hold unlisted shares in a company providing internal REIT management functions. This is a strange resolution as there has already been precedent for EGMs to amend Trust Deeds.
In the same tone, resolutions 2, 3, 4 and 5 are to direct the Trustee NOT to amend other aspects of the Trust Deed despite the Trustee stating that material changes to the Trust Deed are required to allow for an internalised S-REIT.
Meanwhile, questions from unitholders for the AGM to be held on April 23, showed some concern over rising directors’ fees. In particular a unitholder pointed out that directors’ fees rose by 20%.
See also: Stoneweg: New sponsor, new chapter
S-REITs, including Sabana REIT, are externally managed. As such, unitholders DO NOT pay staff costs and directors’ fees. These are born by the sponsor as evidenced by Sabana REIT’s manager’s reply. “It should be highlighted that Director fees and all staff compensation are paid by the Manager and not the REIT,” the manager says.
