MI REIT questions Cambridge Industrial Trust’s intentions

The tussle for unitholder support between MacarthurCook Industrial REIT (MI REIT) and Cambridge Industrial Trust (CIT) continues unabated.

The latest salvo was fired on Wednesday morning by MI REIT, which questioned CIT’s plans for it. MI REIT wants details of CIT’s proposed initiative to take charge of MI REIT’s assets, as well as the costs involved in such a move.

It is also asking how CIT plans to replace MI REIT’s existing S$202 million debt facility which is expiring in December.

In addition, MI REIT queries the reason behind CIT’s move to acquire its stake in MI REIT after the announcement of its recapitalisation plan.

MI REIT reiterates that unitholders need to vote for its recapitalisation plan or risk losing their investment as it may go under without the plan.

CIT, the largest unitholder in MI REIT with a nearly 10 per cent stake, has come out against the plan, saying it is “massively value destructive”. It is lobbying unitholders to vote against MI REIT’s proposal.

Voting for MI REIT’s recapitalisation proposal will take place next Monday, November 23.

Source : Channel NewsAsia – 18 Nov 2009

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