Unitholders of YTL's Starhill Global REIT approve the proposed transaction for the REIT's Malaysian assets
Kuala Lumpur, 17 May 2019
YTL Starhill Global REIT Management Limited, manager of Starhill Global Real Estate Investment Trust (REIT), announced that at the Extraordinary General Meeting (EGM) of Starhill Global REIT held on 16 May 2019, the ordinary resolution set out in the Notice of EGM and put to the meeting was duly passed on an electronic poll vote.
The ordinary resolution was to approve the proposed transaction comprising the new master tenancy agreements for Starhill Gallery and Lot 10 Property (Malaysia Properties), and the asset enhancement works for Starhill Gallery. As a result, 99.93% of Starhill Global REIT’s Unitholders approved the proposed transaction at the EGM.
Tan Sri Dato’ (Dr) Francis Yeoh, Chairman of YTL Starhill Global REIT, said: “I am indeed joyful that a resounding 99.93% of the institutional and retail Unitholders approved the new master tenancy agreements, and the asset enhancement works for Starhill Gallery. This will provide a steady and visible income for Starhill Global REIT in the next 20 years. We are grateful for their support. I thank our Lord Jesus for this blessing.”
Voting on the Ordinary Resolution at the EGM was conducted by way of electronic poll voting. DrewCorp Services Pte Ltd was appointed as the scrutineer at the EGM for the purpose of the electronic poll.
Starhill Gallery and Lot 10 Property were acquired by Starhill Global REIT on 28 June 2010. Since acquisition, the Malaysia Properties have been leased to master tenant, Katagreen Development Sdn Bhd, an indirect wholly-owned subsidiary of YTL Corporation Berhad, which is the sponsor of Starhill Global REIT. The existing master tenancy agreements for the Malaysia Properties contributed approximately 16.6% to Starhill Global REIT’s net property income for the financial year ended 30 June 2018 and account for approximately 11.8% of Starhill Global REIT’s total asset value as at 30 June 2018. The existing nine-year master tenancy agreements will be expiring in June 2019.
As YTL Corporation Berhad has interests of approximately 37.09% in Starhill Global REIT and 100% in the Manager of Starhill Global REIT, the new master tenancy agreements for the Malaysia Properties and asset enhancement works for Starhill Gallery will constitute an interested person transaction under Chapter 9 of the Listing Manual. As the total rent payable under the new master tenancy agreements and cost of asset enhancement works of S$526.8 million is approximately 26.5% of the net tangible assets of Starhill Global REIT, Unitholders’ approval is required.