Tenant of Sabana Reit launches counterclaim; allegations ‘misconceived’, Reit manager says

SABANA Industrial Real Estate Investment Trust’s (Reit) tenant Kleio One-Solution has launched a counterclaim, after the Reit’s trustee served it an originating claim last month.

The originating claim is seeking possession of its premises and payment of some S$2.1 million in outstanding fees.

Kleio One-Solution is the master lessee of the premises located at 33 and 35 Penjuru Lane. As at Jun 30, the tenant accounted for about 2.9 per cent of the Reit’s monthly average gross rental income.

In a bourse filing on Tuesday (Dec 19), the Reit’s manager said Kleio One-Solution has admitted in its defence that it has been in arrears in its rent payment, but the tenant lobbed “certain allegations” in response and has proceeded with a counterclaim.

The manager did not specify the allegations and the basis of the counterclaim. It only said that it considers the allegations and counterclaim as “misconceived”, and is taking legal advice to “robustly challenge these allegations”.

The advice being sought includes the viability of applying for summary judgement against Kleio, it added.

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The manager will make relevant announcements as and when material developments emerge, it stated.

Units of Sabana Reit closed flat at S$0.395 on Tuesday, before the announcement.