Sabana Shari'ah REIT

[ghchua]

Hi weijian,

Nothing surprising, since Quarz Capital is selling to their partner Volare Capital.
https://links.sgx.com/1.0.0/corporate-an...8c974ce676

[sgmystique]

Inputs from Havard Chi on a chatgroup that I am a part of:
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Hi guys, sorry for the delay in response. 🙏

Its abit close to what XYZ mentioned, this 2% is held by an investor under a very loose advisory model. He was already a Sabana unitholders and approached us during the Sabana merger in 2020. At the point, the emphasize was to vote in a bloc to defeat the low ball merger. As we had much more input into how the investor voted in EGMs/AGMs, we counted the units together in line with regulation.

Subsequently, we and the investor both bought more units around 0.35 - 0.4 in early 1H2021 when Black Crane exited. That was how he achieved built a more than 2% stake. The investor also tendered some units into the partial offer by Volare in 2023.

As we will soon be subjected to more trading restrictions, it would be rather unfair if this specific investor was to be bound by these restrictions as well. 

As such, the decision was taken to close this loose advisory relationship and the investor was interested to sell part of the stake. 

We are not privy to the discussions, but we believe that the buyer potentially wanted a bigger stake due to the undervaluation.
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For us, the strategy remains the same. We are currently in the admin process now. I think Mr ABC and DEF would second this, we have been been mostly busy with the legal work for the MAS license application to support the trustee in pushing forward with the internalization process.
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Once this part is done, we can finally push forward with the plans to increase DPU and unit price