Sabana Reit to undergo strategic review by sponsor, manager

THE sponsor and manager of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust will undertake a strategic review of the Reit, days after angry investors said that they are looking to throw out the manager over its lacklustre performance.

In a release late on Thursday night, Reit sponsor Vibrant Group Limited and manager Sabana Real Estate Investment Management Pte Ltd said in a joint statement that the review includes the current shareholding structure and management of the manager. It will also look at Sabana Reit'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. In the meantime, the manager remains fully committed to executing its duties to proactively manage the trust and deliver value to unitholders," the statement said.

Unhappy unitholders had in late January wanted to call for a meeting to remove the current manager of Sabana Reit. In the worst-case scenario, they are willing to liquidate the trust.

The manager then conceded that the Reit has performed poorly compared to its peers in the past three years. It said it would work to stabilise the Reit's distribution per unit (DPU) by cutting costs and selling underperforming assets.

Vibrant Group and its related parties are the largest unitholder of Sabana Reit, with approximately 12 per cent holdings and currently holds a 51 per cent indirect stake in the manager.

It is also the largest tenant of Sabana Reit, contributing approximately 17 per cent of the net property income of Sabana Reit's portfolio as at Dec 31, 2016.