SINGAPORE (Feb 8): Some 66 unitholders representing 0.6% of the total issued units of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) have sent a requisition letter requesting the manager to convene an extraordinary general meeting.

Sabana Real Estate Investment Management, the manager of Sabana REIT, revealed late on Feb 7 that the unitholders are seeking to put forth four resolutions for individual voting by members at the EGM.

The unitholders want to remove the manager of the REIT, and incorporate a new wholly owned subsidiary to take on an internalisation of the manager function.

Otherwise, the unitholders propose the winding up or liquidation of Sabana REIT.

The requisition letter included a note written by one of the requisitioning unitholders, Low Chin Yee.

Low claimed that annual DPU to unitholders had dropped from 9.38 cents to 5.01 cents.

Sabana REIT manager in its statement on Tuesday explained that DPU of 9.38 cents for FY 2013 reflected the contribution of the first six properties acquired post-initial public offering (IPO), while the DPU of 5.01 cents was primarily due to the expiry of a number of master leases in 2013 and 2015.

Low had also criticised the purchase of the property at 47 Changi South Avenue 2 at $23 million, and questioned the “objectivity and independence” of the valuation by Colliers, Savills and Knight Frank.

Low added that “…the same property sits in (the Sponsor)’s book at only $9,935,000”.

Sabana REIT manager said the book value is irrelevant and not a good basis for comparison as he sponsor had purchased the property for its own use, and therefore the book value of the property reflected the original cost of acquisition of the property less accumulated depreciation.

The manager also dismissed Low’s claim that it was being paid too much.

Sabana REIT manager said its fee structure is consistent with that adopted by many other Singapore REITs.

“We would also like to mention that the Manager had elected to receive 80% of its fees in Units since IPO and currently holds 3.92% of the total Units. The Manager’s interests is aligned with all Unitholders,” the Sabana REIT manager added.

Units of Sabana REIT closed half a cent higher at 43.5 cents on Tuesday.