Sabana's activist investors to fast-track plan to internalise management after merger with ESR scuppered

Sabana Reit's manager says its priority is to enhance the Reit's portfolio returns and complete an asset-enhancement project

Published Fri, Dec 4, 2020 · 09:50 PM

Sabana Reit

Singapore

ACTIVIST unitholders got to work fast after the proposed merger between ESR-Reit and Sabana Reit fell through on Friday.

The question "What next?" was top on their minds to ensure a clear path to recovery for Sabana Reit, and one answer was to pursue an internalised Reit management model - an unprecedented move for a Singapore Reit.

In an e-mail to unitholders, Quarz Capital and Black Crane Capital said: "Given the substantial independent unitholders' support, we are fast-tracking the internalisation proposal for Sabana Reit to further expedite on improving the value for all unitholders... The work starts now!"

At Friday's extraordinary general meeting (EGM), exactly a third of the votes were cast by Sabana Reit unitholders opposing the amendments to be made to the Sabana trust deed to allow for the scheme to take place. This was a prelude to the execution of the scheme. Votes representing 192.04 million units or a 33.33 per cent stake were against the resolution. Votes representing …