Separately, on or around June 14, Quarz Capital wrote to Sabana REIT's manager objecting to the issuance of a $100 million bond that is believed to refinance a $93 million bank loan which matures in 4Q2025. The sustainability bond carries a guarantee by the Credit Guarantee and Investment Facility (CGIF). One of Quarz's objections is that the guarantor would need to approve the appointment of a new manager. Interestingly, EY had already stated that installing a new manager at Sabana REIT (whether internal or not) would trigger a change of control covenant, which would have accelerated the loans anyway.
Market observers are suggesting that Sabana Industrial REIT may have to incurr further costs. Quarz Capital Asia and the so-called Sabana Growth Internalisation Committee or SGIC which comprises mainly of Quarz Capital itself, requisitioned an EGM earlier in the year which was postponed. Subsequently, on June 6, Quarz Capital changed the resolutions.
Now, the upcoming EGM, requisitioned mainly by Quarz Capital, will have five resolutions. After some exchange of letters and announcements between Sabana REIT's manager, HSBC Institutional Trust Services (Sabana REIT's Trustee), and Quarz Capital, Quarz Capital has agreed to amend resolutions 1 and 2, but will keep resolutions 3, 4 and 5. The Trustee's appendix is here with the resolutions.
