ESR Group, the sponsor of Sabana Industrial Real Estate Investment Trust (Sabana Reit), has filed an application to the High Court of Singapore to hold the Reit’s May 24 extraordinary general meeting (EGM) in abeyance, meaning to impose a temporary suspension of the meeting until some issues are cleared up.
The Reit manager said on Tuesday (May 14) that the postponement would allow for the final disposal of “HC/OA 19/2024” – the originating application filed by trustee HSBC Institutional Trust Services seeking a declaration that amendments to the trust deed are required to implement the resolutions approved at last year’s EGM.
ESR had also sought to block last year’s meeting, but its application for an interim injunction to do so was dismissed by the High Court.
At the EGM eventually held on Aug 7, unitholders of Sabana Reit voted in favour of the internalisation of the Reit management function. Two resolutions were passed at the meeting – one to remove Sabana Real Estate Investment Management as the Reit’s manager, and the other to effect the internalisation of the management function.
The May 24 EGM is to be held by Sabana’s external manager to consider resolutions set out by a Mar 25, 2024 requisition letter issued by activist investor Quarz Capital and four other unitholders of the Reit.
These resolutions were subsequently revised in an Apr 18 letter.
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As ESR seeks to hold the May 24 EGM in abeyance, the manager of Sabana Reit said it will provide further updates on ESR’s application if material developments arise.
ESR has further requested the liberty to apply for further directions in respect of the EGM, and for the costs of the court application to be provided. It also asked for further, or other relief, as the court sees fit.
Units of Sabana Reit ended flat at S$0.36 on Tuesday.
