Vibrant Group acquiring a further 45% of Sabana REIT’s manager

SINGAPORE (April 8): Vibrant Group is acquiring a further 45% stake in the manager of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust, according to a source.

The transaction is expected to be completed before April 28, the day an extraordinary general meeting is scheduled to be held for unitholders to vote on resolutions that include removing the REIT’s manager.

Vibrant already owns 51% of Sabana REIT’s manager. It also controls some 12% of Sabana REIT’s units, a portion of which is held by the manager. Many unitholders of Sabana REIT are upset that distributions per unit of the REIT have fallen sharply over the last three years, while fees paid by the REIT to its manager have remained stable. The REIT also tapped unitholders for money last year through a deeply discounted rights issue, and has proposed further acquisitions that aren’t expected to be immediately yield accretive.

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