Donald Han, CEO of Sabana REIT’s manager explained that the REIT had to divest the property because of the maturity of a $100 million sukuk at a time when the REIT’s aggregate leverage was 38%, and the regulatory ceiling was 45%.
Sabana Industrial REIT’s AGM was a lively affair but not as lively as Great Eastern Holdings’ AGM. Questions from unitholders centred around some operational metrics such as vacancies, occupancies, 1 Tuas Avenue 4, and 9 Tai Seng Drive.
The problem with 1 Tuas Avenue 4 is that the cost of the AEI is too high, grumbled a dissatisfied unitholder. The same unitholder highlighted that the manager divested 9 Tai Seng Drive and it is now valued at more than $200 million, or $280 million depending who was describing the property.
