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SINGAPORE: Mainboard-listed Cambridge Industrial Trust (CIT) is rejecting MacarthurCook Industrial REIT's (MI REIT's) recapitalisation plan.
CIT, the largest unitholder in MI REIT with a nearly 10 per cent stake, said it will vote against MI REIT's proposal.
Earlier this month, MI REIT said it will issue new shares to a new investor, AMP Capital, as well as to existing investors like AIMS Financial to raise cash.
CIT said the recapitalisation proposal will destroy unit value for existing MI REIT unitholders.
It noted that MI REIT's proposal to issue new units to the selected institutional investors at 28 cents each is what it described as "massively value destructive". At that price, it represents a 70.2 per cent discount to MI REIT's net asset value backing per unit of 94 cents.
CIT said that unitholders are better off having MI REIT wound up and its assets realised, than to give support for the recapitalisation.
It added that it is also calling for a resolution to remove MacarthurCook's investment managers and appoint CIT's management as manager of MI REIT. CIT said it will deliver a far more compelling and better outcome for MI REIT
unitholders than that currently proposed.
The voting for MI REIT's recapitalisation proposal will take place on November 23.
- CNA/sc
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