Sabana Shari'ah Compliant Industrial REIT's sponsor and manager is conducting a strategic review of the company to explore all options in advancing sustainable growth for the REIT.
Vibrant Group Ltd. and Sabana Real Estate Investment Management Pte. Ltd. announced the review to evaluate Sabana REIT's strategic direction and business, according to a release. The review will include the shareholding structure and management of the manager.
The review takes place as the master leases for Vibrant Group's five injected properties had expired Nov. 25, 2015. Vibrant Group injected the assets into the REIT's initial portfolio under a sale-and-leaseback arrangement, at the time when Sabana REIT went public. Vibrant Group still plans to support the company by renewing its three master leases for the properties at 51 Penjuru Road, 33 and 35 Penjuru Lane and 18 Gul Drive in Singapore until Nov. 25. A new tenant replaced Vibrant Group for the 30 & 32 Tuas Avenue 8 property, while the 218 Pandan Loop asset was sold for S$14.8 million.
As of Dec. 31, 2016, Vibrant Group and its related parties lease approximately 665,446 square feet of gross floor area in the REIT's properties, equivalent to 15.1% of its portfolio. Vibrant Group and its related parties are currently Sabana REIT's largest unit holder with a 12.0% stake as of Feb. 2, according to a release.
As of Feb. 2, US$1 was equivalent to S$1.41.