Court dismisses interim injunction sought by ESR to block Sabana Reit EGM
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The New Tech Park at Lorong Chuan is part of Sabana Reit's property portfolio.
PHOTO: SABANA REAL ESTATE INVESTMENT MANAGEMENT
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Vivienne Tay
SINGAPORE - The Singapore High Court on Tuesday dismissed ESR Group’s application for an interim injunction to block Sabana Industrial Real Estate Investment Trust’s (Sabana Reit) manager from convening the extraordinary general meeting (EGM) requisitioned by Quarz Capital.
ESR Group, the sponsor of Sabana Reit and ultimate owner of the Reit’s manager, applied for the interim injunction on Friday after filing an originating application to render the EGM “invalid and/or ineffectual”.
The hearing date for the originating application will be scheduled during a case conference on Thursday, Sabana Reit’s manager said.
“We intend to include Quarz in the application, so that all interested parties’ points can be fully aired. This will ensure that no unnecessary disruption is caused to the Reit by any further public discourse,” ESR Group said.
In response to the dismissal of the interim injunction, Quarz Capital urged the sponsor to “engage in constructive dialogue rather than litigations”.
“The outcome to proceed with the EGM has again affirmed Singapore’s strong legal framework and upholds the key pillar of unit holders’ protection in Singapore which is the right of unit holders to remove a manager by a simple majority vote,” it said.
The EGM requisitioned by activist investor Quarz Capital is set to take place on Aug 4.
Unit holders will vote on two resolutions – the removal of Reit manager Sabana Real Estate Investment Management and the internalisation of the Reit management function of Sabana Reit.
The manager on Wednesday lifted a trading halt called on Tuesday. The counter rose 2.4 per cent to 43 cents at market close.
