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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

Ben Paul

Ben Paul

Published Mon, Jul 3, 2023 · 05:00 AM
    • Sabana Reit's manager ought to obtain clarity from UOB and other lenders on whether they plan to pull back their credit facilities in the event unitholders vote for internalisation.
    • Sabana Reit's manager ought to obtain clarity from UOB and other lenders on whether they plan to pull back their credit facilities in the event unitholders vote for internalisation. PHOTO: SABANA REIT

    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.

    BT CorrespondentsSabana ReitQuarz CapitalESR CaymanESR-Logos ReitBoard of DirectorsCorporate governanceSpotlight

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