Quarz’s internalisation proposal is an opportunity for Sabana Reit’s manager to show independence
Whether unitholders choose to set up a new internal manager or acquire its existing manager, they will have to shoulder some cost and risk
THE manager of Sabana Industrial Reit has struggled to convince investors that it is independent of ESR Group ever since it tried and failed to push through a lopsided merger with ESR-Reit in 2020.
This matter has cropped up yet again, amid a controversial proposal by activist investor Quarz Capital to internalise the manager of Sabana Reit. In its Jun 7 requisition for an extraordinary general meeting (EGM) to approve its internalisation proposal, Quarz said – among other things – that ESR Group’s ownership of the managers of Sabana Reit and ESR Logos Reit (formerly ESR-Reit) creates potential conflicts of interest.
On Jun 22, in a lengthy rebuttal to “misleading assertions” made by Quarz in the requisition letter, the manager of Sabana Reit insisted it operates independently of ESR Group.
Copyright SPH Media. All rights reserved.
