Corporate digest

Far East Hospitality Trust

FAR East Hospitality Trust (FEHT) has secured its first sustainability-linked loan facility worth S$125 million for a term of five years from OCBC Bank, which is the sole lender for this transaction.

The loan will be used to refinance FEHT's existing bank borrowings, with the loan's interest margin being tied to selected sustainability targets that were set together with OCBC Bank, including the reduction in the energy consumption of its portfolio and improvements in the Building and Construction Authority of Singapore's Green Mark Certification for its properties.

If these pre-set targets are met, the interest margin on the facility will be subsequently reduced on a tiered basis. FEHT has 13 properties in Singapore, consisting of nine hotels and four serviced residences.

The facility agreement also places restrictions on a change in the manager of the Reit and a change in ownership of the Reit manager, FEHT said.

Sabana Reit

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SABANA Shari'ah Compliant Reit's substantial unitholder Quarz Capital has recently purchased 650,000 units in the Reit for S$250,250, beefing up its stake from 8.942 per cent to 9.004 per cent. The consideration comes down to an average of S$0.385 per unit. Sabana Reit closed at S$0.395 on Monday, up half a cent.

Quarz did not state its date of acquisition in its filing to the Singapore Exchange.

Shen Yao

GOLD miner and explorer Shen Yao Holdings (previously known as LionGold) has agreed to buy up to 3.55 million shares, or a 20.25 per cent stake, in loss-making property analytics firm Real Estate Analytics for about S$8.8 million from Wodabow Pte Ltd and its sole director Jean-Michel Paul.

This will be funded by issuing 2.93 billion new shares in the company at S$0.003 each, with the total consideration to be paid in four tranches upon fulfilment of certain conditions. The new shares issued will make up 8.23 per cent of Shen Yao's enlarged share capital upon the completion of all four closings.

The issue price for each consideration share represents a discount of about 30.23 per cent to the volume weighted average price of the shares for trades done on March 26.

The transaction is expected to negatively impact its net profit and earnings per share. The deal is subject to shareholders' approval at an extraordinary general meeting to be convened.