SINGAPORE - Sabana Industrial Real Estate Investment Trust’s (Reit) manager has filed a defence denying tenant Kleio One-Solution’s counterclaim in a case involving rent arrears.

In an announcement on Dec 28, the manager said it sought to clarify Kleio One-Solution’s mischaracterisation of the Reit’s obligations under lease. This forms the basis for the tenant’s counterclaim.

The matter is still before Singapore High Court for determination. The manager will make relevant announcements as and when there are material developments.

The tenant is the master lessee of 33 and 35 Penjuru Lane, and accounted for about 2.9 per cent of the Reit’s monthly average gross rental income as at June 30.

Sabana Reit had filed an originating claim on Nov 17 seeking possession of the premises, outstanding fixed rent, land rent, property tax and late payment interest of around $2.1 million.

The Reit’s manager said in a filing on Dec 19 that Kleio One-Solution had admitted in its defence that it has been in arrears in its rent payment, but proceeded with the counterclaim.

Units of Sabana Reit closed up 0.5 cent, or 1.3 per cent, at 40 cents on Dec 28. THE BUSINESS TIMES