Soilbuild REIT has completed the disposal of its Australian assets, and will delist from the Singapore Exchange (SGX) on 14 April.
The Singapore real estate investment trust was established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a portfolio of income-producing real estate used primarily for business space purposes.
It had been listed on the Singapore Exchange Securities Trading Limited since 16 August 2013 and later invested in Australia as part of efforts to diversify.
“The manager will strive to build long-lasting relationships with the master lessees, the underlying tenants and the trust’s tenants,” the REIT’s strategy explained.
“[Soilbuild] will work closely with the property manager, to implement pro-active policies and measures to enhance and improve the properties’ operational performance, thereby increasing the yields and mitigating re-leasing risks of the properties.
“Focus will be on regular engagement with tenants, achieving early renewal commitments, effective marketing of vacant units and carrying out asset enhancement projects renewal commitments, effective marketing of vacant units and carrying out asset enhancement projects.”
Its portfolio of properties included 10 properties – two business parks and eight industrial properties – in Singapore and three properties in Australia
However, its Australian property unit price regularly traded below book value amid a series of tenant defaults dating back to 2016.
At a general meeting last month, the disposal of Australian assets was voted favourably by unitholders representing about 262.9 million (83.67 per cent).
Soilbuild confirmed it would delist rom the SGX following the sanction it received from a court order approving the trust scheme to delist the REIT.
Soilbuild REIT has been suspended from trading, with investors to receive SGD0.53806 in cash for each REIT unit held.
The vote to dispose of Australian assets coincided with a separate vote for the proposed privatisation offer from Blackstone Real Estate and the executive chairman of the REIT’s sponsor Soilbuild Group.
With the proposed offer a trust scheme of arrangement, the outcome was determined by minorities with 91.94 per cent of unitholders voting in favour of the trust deed amendments related to the proposed privatisation.
