Sime Darby, JRAM fail to reach definitive deal but talks continue
PETALING JAYA: Sime Darby Bhd and Japan Residential Assets Manager Ltd (JRAM) have failed to enter into an agreement for the disposal of its industrial properties in Australia to Saizen REIT, but discussions are ongoing, the conglomerate said yesterday.
A definitive agreement between Sime Darby Property Singapore Ltd (SDPSL) and Hastings Deering (Australia) Ltd (HDAL) and JRAM was to have been entered as of the long-stop date of Sept 30, 2016.
“SDPSL and HDAL continue to be in discussion with JRAM. If the parties are able to resolve outstanding matters, SDPSL and HDAL may enter into the definitive agreements,” Sime Darby said in a stock exchange filing yesterday. No details on the outstanding matters were given.
Sime Darby’s indirect wholly owned subsidiaries HDAL and SDPSL had on Aug 15, 2016, entered into a framework agreement with JRAM, manager of Saizen REIT, for the proposed disposal of industrial properties in Australia to Saizen REIT.
It was intended that HDAL would sell certain of its industrial properties in Australia to Saizen REIT, which would be master leased to HDAL, and SDPSL or its nominee or nominees would be issued new units in Saizen REIT as part of the reverse takeover of Saizen REIT by SDPSL.
SDPSL also entered into a conditional share purchase agreement with JRAM for the proposed acquisition of 80% of the issued shares of JRAM. The completion of the properties disposal and the JRAM acquisition were inter-conditional.
Sime Darby said in August it wanted to develop a REIT platform to generate a resilient and recurring income stream.