They have already sent letters of demand to export dealer Adviva Distribution.
Sabana REIT terminated the lease of its tenant, export dealer Adviva Distribution for failing to pay over $2.14m worth of rental debts.
“Sabana REIT intends to set off the outstanding rental arrears and damages owed to it by the tenant against the total monies of $3.58m held by Sabana REIT in relation to the property, which comprises the security deposit provided by the tenant and other amounts that may be payable to the tenant for works done on the Property,” they noted.
The property rented is located in Changi South Street 2 and had contributed about 6.5% to the REIT’s gross revenue for Q2.
The REIT said that they have already looked into the legal concerns brought about by the issue to protect their stakeholders’ interest. Moreover, they have already sent two letters of demand for the tenant back in July and April.
The firm commented that they are ‘proactively’ working to resolve the issue with Adviva whilst seeking a suitable replacement tenant.
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