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Sabana Shari'ah Compliant REIT tenant in rent default

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Sabana Shari'ah Compliant REIT tenant in rent default

Sabana Shari'ah Compliant Industrial REIT's manager issued a notice of termination to the tenant of the company's 10 Changi South Street 2 property in Singapore.

The notice was issued by Sabana Real Estate Investment Management Pte. Ltd. due to the tenant's failure to pay rent and other payable sums under the lease agreement.

Adviva Distribution Pte. Ltd.'s current outstanding and due rental arrears amount to roughly S$2.14 million. The REIT intends to offset the outstanding arrears and damages against the total of roughly S$3.6 million that it holds in the form of the tenant's security deposit against the property and other amounts payable to the tenant for works done on the property.

The manager has shortlisted and is in negotiations with potential replacements for the defaulted tenant, and its board has sought legal advice related to the matter.

As of Aug. 31, US$1 was equivalent to S$1.37.