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SABANA Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) on Friday issued 2.58 million units, worth about S$1.03 million, to its manager to cover 80 per cent of the base management fee for the fourth quarter ended Dec 31, 2016.
The units were valued at an issue price of S$0.3986 apiece, said the board of directors of the manager, Sabana Real Estate Investment Management.
Following this issue, the total units in issue are 1.05 billion, of which the manager's holding is about 3.92 per cent, or 41.24 million.
The fee is calculated in accordance with the trust deed (as amended) constituting Sabana Reit by taking 0.5 per cent per annum of the value of the deposited property of Sabana Reit.
The issue price per unit was determined based on the volume-weighted average traded price for a unit for all trades done on Singapore Exchange (SGX) in the ordinary course of trading for the last 10 business days (from Dec 19 to Dec 31, 2016) for the quarter ended Dec 31, 2016. It has been adjusted for the rights issue for each of the business days prior to the first day of "ex-rights" trading.
The board also said that as disclosed in the prospectus of Sabana Reit and pursuant to the trust deed, the manager may elect from time to time to receive its base management fee wholly in units, or wholly in cash, or in any combination of both.
The manager has elected to receive 80 per cent of the fee in units and 20 per cent in cash.
"This arrangement aligns the interest of the manager with the interests of the unitholders of Sabana Reit," said the release.
Sabana Reit's counter closed unchanged on Friday at S$0.370.