The manager of MacarthurCook Industrial REIT said its recapitalisation plan is the only proposal which meets the REIT’s substantial and immediate funding requirements.
It said this is reinforced by Cambridge Industrial Trust’s (CIT’s) disclosure on Friday that it has no viable proposal or solution for MI-REIT and its unitholders.
CIT said on Friday that the Monetary Authority of Singapore would not allow its manager to be appointed as MI-REIT’s manager due to potential conflicts of interest.
This week, CIT launched a push to gain control of MI-REIT’s management, having bought a key 9.8 per cent stake in the trust earlier this month.
CIT said it will continue to explore options that do not involve it being appointed as MI-REIT’s manager.
It has also said that it has no current intention to merge with MI-REIT and that it has no financing arrangements in place for MI-REIT.
CEO of MI-REIT, Nicholas McGrath, said there is no other proposal which addresses the issues of MI-REIT.
He added that failure to gain unitholders’ approval for the recapitalisation plan at the extraordinary general meeting on Monday would put the REIT’s investors at significant risk of losing their money.
Source : Channel NewsAsia – 20 Nov 2009