Sabana Reit trustee picks advisers, weighs retaining interim manager staff amid internalisation
Vivienne Tay
THE trustee of Sabana Industrial Real Estate Investment Trust (Sabana Reit) is looking at the feasibility of potentially acquiring existing assets and retaining the existing staff of the interim manager.
These possible choices are among various commercial options the trustee is considering in a bid to build a functioning internal management, it said on Tuesday (Nov 7).
For now, the trustee, HSBC Institutional Trust Services (HSBC Trustee), has appointed KPMG Services as its tax adviser and FTI Consulting (Singapore) as its financial adviser. It continues to work with Rajah & Tann Singapore on legal matters.
On top of preparing for a new corporate entity to serve as the new internal manager, the Reit’s trustee said it is in the process of searching and appointing an executive search firm to help staff the new internal manager.
The trustee will need to identify and propose who would be on the new internal manager’s board and management team as part of its preparations to apply for a capital markets services licence.
These proposed appointments of directors and the chief executive of the internal manager will need to be submitted to the Monetary Authority of Singapore (MAS) for approval, the trustee said.
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HSBC Trustee said it will look to the appointed executive search team to advise on hiring and retaining qualified personnel. This includes, but is not limited to, potentially retaining the existing staff of the interim manager in order to maintain the continuity of the Reit’s operations to implement the internalisation.
The trustee is also developing a project plan that incorporates financial analyses, licences, operating protocols and other measures needed for the internal manager to operate as a licensed entity.
It noted that it continues to engage with the interim manager on a weekly basis to oversee the Reit’s operations.
As financial adviser, FTI will provide an analysis of Sabana Reit’s existing management structure and look at the current state and cost of operations and responsibilities. This will be to help establish the requirements for a manager in an internalised management structure.
KPMG will help analyse and assess potential structures and implications from an internalisation of the Reit’s management from a Singapore tax perspective.
The trustee will work with Rajah & Tann on all legal and regulatory matters to ensure the internalisation is compliant with the applicable laws and regulations. This includes preparing applications for submission to MAS for relevant licences and authorisations.
Sabana Reit’s units were trading 1.3 per cent or S$0.005 lower at S$0.385 as at 12.39 pm on Tuesday.
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