KUALA LUMPUR (Dec 26): UOA Real Estate Investment Trust (KL:UOAREIT) said on Friday that its unitholders’ meeting was adjourned after a unitholder raised concerns over the yield and valuation of the proposed related-party acquisition of three UOA Business Park assets.
The meeting, scheduled on Tuesday (Dec 23), was to seek unitholders’ approval for the acquisition as well as the establishment of an income distribution reinvestment plan.
In a bourse filing, UOA REIT’s manager, UOA Asset Management Sdn Bhd, said the REIT had received a proposal from a unitholder on the day of the meeting, requesting an adjournment on the grounds that “the yield and valuation of the proposed transaction require further context and information for unitholders to reach a fully informed decision”.
The new date, time and venue for the meeting have yet to be fixed, with the manager saying an announcement will be made in due course.
Under the proposed acquisition, UOA Development Bhd (KL:UOADEV) will transfer three properties within UOA Business Park near Subang Jaya to UOA REIT for a total consideration of 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.
Units of UOA REIT closed unchanged at 83 sen on Friday, giving it a market capitalisation of RM560.7 million.