PAG reports Spring Reit manager to watchdog for ‘inaccuracies’ in circular to unit holders

PAG Real Estate, an investor in Spring Reit, has asked the Securities and Futures Commission to take action against the reit’s manager for presenting inaccurate information that could prevent unit holders from making a well-informed voting decision ahead of a motion to have the manager replaced.

The alternative investment management company owns about 12.4 per cent of the reit. In a letter submitted to the securities watchdog as well as the Stock Exchange of Hong Kong, PAG said the manager had made several false and misleading statements in a circular dated October 25.

“The letter submits that the [reit] manager has presented material inaccuracies, which are detrimental to the interest of Spring Reit unit holders, and which could prevent unit holders from making properly informed voting decisions at the extraordinary general meeting, and on whether to hold or sell units in Spring Reit,” PAG said in a statement on Wednesday.

It came a day after Toshihiro Toyoshima, the chairman of Spring Asset Management, the asset manager of Spring Reit, said the company had secured written confirmations of support from unit holders with more than 50 per cent of voting rights.

An extraordinary general meeting will be held on November 10 by Spring Reit to decide on whether it should replace Spring Asset Management, as has been proposed by PAG since August.

PAG said: “The manager did not disclose that at least 34 per cent of Sprint Reit’s units were in the hands of the manager and its friendly parties.”