Two independent non-executive directors of Sabana Shari'ah Compliant Industrial Real Estate Investment Trust (Sabana Reit) have resigned following the refusal of "certain unit holders" to endorse their appointments, the Reit's manager said on Wednesday night.
The announcements did not name the unit holders, but noted that they hold about 12 per cent of the Reit's total units.
Earlier this month, minority investors Quarz Capital Management and Black Crane Capital had said in an open letter that they would not endorse the proposed directors.
Mr Yeo Wee Kiong and Mr Willy Shee had been appointed on Jan 1 so that the manager's board could comprise four independent non-executive directors.
Their continuing appointment was subject to endorsement at the Reit's annual general meeting (AGM) next month.
After the statement by "certain unit holders", the appointed directors "have decided to withdraw their consent to stand for such endorsement" and have tendered their resignations which will take effect on April 26, before the AGM, said the manager.
The resignations mean the board now consists only of chairman Tan Cheong Hin and audit and risk committee chairman Wong Heng Tew.
The Reit manager said the two departing directors will be replaced "as soon as practicable".
As with the recent appointments, the search process will be carried out independent of ESR Cayman, which wholly owns the manager and holds about 20.88 per cent of the units in the Reit.
Sabana Reit units closed up 2.6 per cent at 39.5 cents yesterday.
THE BUSINESS TIMES