KUALA LUMPUR (Dec 23): UOA Real Estate Investment Trust (KL:UOAREIT) announced that its unitholders’ meeting, scheduled for Tuesday (Dec 23), was adjourned after unitholders duly passed a motion to adjourn.
The meeting was intended to seek unitholder approval for the proposed acquisition of three UOA Business Park assets and the establishment of an income distribution reinvestment plan.
“The board of directors will issue further announcements to the unitholders to fix the date, time and venue of the adjourned meeting,” according to the REIT’s bourse filing on Tuesday (Dec 23).
However, the REIT did not provide reasons to adjourn the meeting.
Under the acquisition, UOA Development Bhd (KL:UOADEV) is transferring three properties in UOA Business Park near Subang Jaya to UOA REIT in a deal worth RM200 million.
The properties include Tower 2A, valued at RM55.7 million, and Tower 2B, valued at RM54.8 million — both to be settled fully in cash.
The third property is the UOA Business Park's car park, priced at RM89.5 million, which will be paid for via the issuance of 107.83 million new UOA REIT units at 83 sen apiece.
The deal is deemed a related-party deal involving interested directors of UOA Development and major shareholders Kong Chong Soon @ Chi Suim and Kong Pak Lim.
The deal will be undertaken by Everise Project Sdn Bhd, a 60%-owned subsidiary of UOA Development, which signed the sales and purchase agreements with RHB Trustees Bhd, the trustee of UOA REIT.
At the noon market break, UOA REIT’s unit was unchanged at 82.5 sen, translating into a market capitalisation of RM557 million.
UOA Development’s share price fell two sen or 1.08% to RM1.83, giving the group a market capitalisation of RM4.86 billion.