Latest Forum Topics /
Alpha Integrated RE
Last:0.485
+0.005
|
 Post Reply
|
|
SABANA REIT
|
|||||
|
sangsang1
Senior |
29-Jul-2023 13:50
|
||||
|
x 0
x 0 Alert Admin |
You are right. Once the new internal manager is setup and owned by all shareholders, they can even manage other property portfolio the next time and make more money for shareholders!!! big huat to all sabana shareholders!! 
|
||||
| Useful To Me Not Useful To Me | |||||
|
BillionX
Senior |
29-Jul-2023 10:23
|
||||
|
x 0
x 0 Alert Admin |
Hopefully the resolutions will receive a majority vote. The implementation of the internal manager proceed accordingly and without dramas. As unit holders we can expect an improved dpu and the price of the Reit should reflect its true value. 😊 | ||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
GoldenPig
Veteran |
29-Jul-2023 10:18
|
||||
|
x 0
x 0 Alert Admin |
I think share price should go up a bit after the EGM, regardless of outcome. It is uncertainty that depresses share prices. Until the EGM outcome is known, investors who are either for or against internalisation cannot make a stand & buy. Without buying support from either camp, the price will likely continue to drift downwards as those who hate uncertainty sell off in case the outcome is the one they think is bad for the REIT.
|
||||
| Useful To Me Not Useful To Me | |||||
|
sangsang1
Senior |
28-Jul-2023 17:10
|
||||
|
x 0
x 0 Alert Admin |
all the scaremongering by the manager making the share price come down, really really pissed. Pay manager money and they talk crap about the reit like during the 2020 merger.  Once resolutions go through share price should do well like what happened when shareholders voted down the merger. |
||||
| Useful To Me Not Useful To Me | |||||
|
sangsang1
Senior |
28-Jul-2023 16:01
|
||||
|
x 0
x 0 Alert Admin |
Very well said!! they are the one with no clear plans except maintaining the current reit manager and charging fees to unitholders... left so many properties empty and high vacancy until being forced by Quarz to increase ocuppancy... If shareholders don' t remove them, 1 bad acquisition, merger or capital raising will destroy the share price like the last merger
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
Seventy
Member |
28-Jul-2023 15:14
|
||||
|
x 0
x 0 Alert Admin |
All the external Sreit manager buy this buy that sell this sell that to take fees?. Remove one, see whether the rest dare to anyhow charge fees or not
|
||||
| Useful To Me Not Useful To Me | |||||
|
Joelton
Supreme |
28-Jul-2023 09:59
|
||||
|
x 0
x 0 Alert Admin |
Procedures to internalise Sabana Reit&rsquo s manager are in place: Quarz Capital
THERE are strong legal and regulatory frameworks in Singapore to safeguard unitholders of a real estate investment trust (Reit) during the process of setting up a new internal manager, said activist investor Quarz Capital.
It also said that there will be no vacancy in the management of Sabana Industrial Reit : M1GU -1.2%, if unitholders vote to replace its current external manager with an internal one.
The Reit&rsquo s trustee &ldquo has confirmed that it will only remove the external manager once the internal manager is fully set up, licensed and ready to take over&rdquo , Quarz added.
Quarz, which also holds units of Sabana Reit, made these arguments in an open letter to the Reit&rsquo s unitholders, management and board on Thursday (Jul 27). It sought to refute claims made by the current manager Sabana Real Estate Investment Management (SREIM), as well as its owner ESR Group, that there are hurdles to internalisation given that no blueprint currently exists for such a structure.
In the letter, Quarz said that legal and regulatory action might be taken against SREIM and its directors if it fails to fulfil its obligations.
&ldquo The Monetary Authority of Singapore has specifically put in place a comprehensive regulatory framework to ensure stability, continuity, and protection to safeguard unitholders in the removal of manager and internalisation process,&rdquo it noted.
Quarz and ESR Group, along with SREIM, have been embroiled in a fiery exchange over the past two months, after the activist investor requisitioned an extraordinary general meeting (EGM) to vote on two resolutions.
The first resolution is to remove SREIM as the Reit&rsquo s current manager. The second resolution, if passed, will put into action the internalisation of Sabana Reit&rsquo s management by incorporating a subsidiary wholly owned by the Reit&rsquo s trustee and appointing such a subsidiary to act as the Reit&rsquo s manager.
The EGM, which was originally slated to be held on Aug 4, will now be held on Aug 7.
ESR Group has made the case to unitholders that the passing of the second resolution would not automatically lead to internalisation. On the contrary, it said that the resolution&rsquo s passage would cast Sabana Reit into a prolonged period of uncertainty, which could result in a loss of confidence in the Reit.
This is because the lack of an internalised management structure for Reits means considerable time and costs will be needed to identify and establish one before getting it approved by unitholders.
ESR Group also previously said that there is &ldquo no assurance or certainty&rdquo that existing staff of SREIM would be willing to stay on if both resolutions are passed.
In its latest salvo, Quarz said that claims made by SREIM and ESR Group are &ldquo scare tactics&rdquo and &ldquo empty threats&rdquo .
Besides its argument that procedures for internalisation are already in place, Quarz also said it will likely take less than two years of cost savings to fully pay for the projected cost of setting up the new internal manager. This is estimated to be between S$3 million and S$5 million.
&ldquo However, the true cost savings for unitholders is the complete alignment of interest of the internal manager,&rdquo Quarz said. &ldquo This ensures that no unitholders&rsquo monies will be wasted in potentially value-destructive acquisitions done to boost acquisition, performance and management fees to the external manager.&rdquo
|
||||
| Useful To Me Not Useful To Me | |||||
|
sealTeam3
Member |
28-Jul-2023 01:14
|
||||
|
x 0
x 0 Alert Admin |
Until today, the manager and directors have never shown any remorse for what they did back then.. no apologies or explanation.. charging unitholders for the full costs of the merger and paying themselves big fat salaries..
And it seems that everytime Quarzt propose something, their sole purpose is just to reject and ridicule. internal manager set up is so common elsewhere.. it cant be all bad right.. their only counterattack is that no clear plan, risks and uncertainties.. then why dont work with Quarzt to come up with a good plan? Didnt they claim their interest is fully aligned with unitholders ?? |
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
sealTeam3
Member |
28-Jul-2023 00:47
|
||||
|
x 0
x 0 Alert Admin |
Remember the current manager and ESR were so dead set on pushing for the lowball merger.. telling unitholders how great it was to merge.. and using the same ?scare tactics? to tell people how uncertain and risky it would be if we dont merge.. look at what happened! Never trust them again!!
Voting YES for Resolution 1 and 2! |
||||
| Useful To Me Not Useful To Me | |||||
|
sangsang1
Senior |
27-Jul-2023 17:47
|
||||
|
x 0
x 0 Alert Admin |
internal manager will be owned by everybody. Just look at croesus. once internal manager comes in, entire reit sold for 30-40% higher. Also no more placement and rights to buy sponsor' s property. just focus on getting dividend and share price up and maybe even share buyback to push up share price as leverage so low. Voting Yes for both resolutions!
|
||||
| Useful To Me Not Useful To Me | |||||
|
sangsang1
Senior |
27-Jul-2023 17:40
|
||||
|
x 0
x 0 Alert Admin |
lol, towkay  i think you are really not familiar with ESR REIT.on top of losing 30 million when divesting the 300 plus million properties, ESR also write down their properties by 96 million in 1H2023. Is this the reason why they had to raise placement and rights? This is part of the reason why book value fell to 33.7 cents from 36.4 cents. in 2H2022, ESR also had to write down property portfolio by 50 million In end 2019, NAV was 43 cents, so this is a more than 20% drop in more than NAV in 3 years. Look at the DPU as well.. if you take out capital distribution, real dpu from rental income only 1.13 cents in 1H2023. Once they stop capital distribution, get ready for the probably big drop in DPU. The last time they stop capital distribution from 2019 to 2020, price crashed from 50 cents to 40 cents The reason why sabana shareholders should vote to get rid of the ESR owned manager is quite clear
|
||||
| Useful To Me Not Useful To Me | |||||
|
mrwise
Supreme |
27-Jul-2023 16:16
|
||||
|
x 0
x 0 Alert Admin |
Look at how ESR themself is doing now....see their recent ESR report and u know what i mean too...
|
||||
| Useful To Me Not Useful To Me | |||||
|
|
|||||
|
luckyguy3
Master |
27-Jul-2023 15:41
|
||||
|
x 0
x 0 Alert Admin |
We do not know the end result yet. :) . 1 year later we shd see. ESR-LOGOS is executing it' s 4Rs to rejuvenate its properties and also a few AEIs completing next Q1/24. vs Sabana reits internalisation. We shd see at the end of 2024. Cheers
|
||||
| Useful To Me Not Useful To Me | |||||
|
mrwise
Supreme |
27-Jul-2023 15:09
|
||||
|
x 0
x 0 Alert Admin |
I can only say Quarz has not disappoint us so far..... What about ESR?? Think for ourself....what is good n bad....from what was done previously... dyodd....
|
||||
| Useful To Me Not Useful To Me | |||||
|
luckyguy3
Master |
27-Jul-2023 13:16
|
||||
|
x 0
x 0 Alert Admin |
U say is ok for Quarz not to reveal their prospects to prevent the incumbent from disrupting the change, this i agree to a certain extend. BUT what if after the EGM, Quarz announces they appointing Ex-CEO of SPH Ng Yat Chung to be the CEO of Sabana reit internal manager, how? Would u then start to go against Quarz and ask for another EGM to reject their choice of internal manager? So next time u want the internal manager to be known first b4 u vote in the EGM right? U agree?
|
||||
| Useful To Me Not Useful To Me | |||||
|
BillionX
Senior |
27-Jul-2023 12:50
|
||||
|
x 0
x 0 Alert Admin |
If the resolutions are approved the next step is to vote on a new manager. So I am confident that all unit holders can exercise their democratic rights to accept or reject Quartz proposal. We will no longer be beholden to and accept a manager who is technically an employee of a major unit holder. and not the retail unit holders. Let see how it goes at the egm . PS If you are Quartz would you reveal your prospects given that the incumbent is hell bent to disrupt the change? Just a thought.🤔 | ||||
| Useful To Me Not Useful To Me | |||||
|
luckyguy3
Master |
27-Jul-2023 11:38
|
||||
|
x 0
x 0 Alert Admin |
I not assuming Quarz does not have a plan to put in place a new manager, I saying out loud they dun have a plan. IF they have a plan, why not they announce it NOW? Tell shareholders who is the internal manager they will be engaging and let the shareholders vote. What happens if they intend to engage the ex-SPH CEO Ng Yat Chung as the CEO for Sabana reit but would only announce it after the EGM? Would you still vote yes during the EGM? Don' t u agree that for internalisaion, shareholders have to have a say in who the internal manager should be? Correct? So why not Quarz first find the internal manager and let known to all the shareholders to vote during the EGM? As I say what happens if they are asking ex-SPH CEO Ng to be the head of the internal manager? Would u regret voting yes during the EGM and then discover that Ng is going to be the CEO of Sabana reit?
|
||||
| Useful To Me Not Useful To Me | |||||
|
BillionX
Senior |
27-Jul-2023 10:59
|
||||
|
x 0
x 0 Alert Admin |
There is no assumption that replacing the manager will be implemented without any hitches . There is also no assumption that there will not be costs involved.. What we can assume is that there will be cost savings by employing an internal manager. We can also assume that this manager is no longer subordinated to a major unit holder. And we can assume that ESR can no longer use Sabana as a vehicle for its own profit agenda and at the expense of retail unit holders ie the performance of the Reit in terms of dpu and capital appreciation. It is your assumption that Quartz does not have a plan to put in place a new manager. So first things first. Vote for the change. Once approved the rest of the exercise will fall in place.😊 Sabana is profitable brick and mortar company. To say that the existing banks may not honor the loans at current rates is as good as the assumption that the change of manager may even offer a better rate 🤔 | ||||
| Useful To Me Not Useful To Me | |||||
|
luckyguy3
Master |
27-Jul-2023 10:37
|
||||
|
x 0
x 0 Alert Admin |
yes.. this is what I called constructive feedback and argument instead of just blindy saying euphoria and nice to hear things. Well done. Now shareholders turn to force Quarz to come out with a concrete plan and shorten the time frame to 1 mth instead of 1 year to find an internal manager OR ask Quarz to find internal manager FIRST ready to be deployed and then the convene the EGM so that shareholders can judge for themselves the quality of the internal manager presented by Quarz. The EGM should be postponed until Quarz can present their internal manager to the shareholders for shareholders to make a judgement
|
||||
| Useful To Me Not Useful To Me | |||||
|
GoldenPig
Veteran |
27-Jul-2023 09:54
|
||||
|
x 0
x 0 Alert Admin |
Ya, agree. I think the best way forward now is to: 1) vote against resolution 1 2) vote for resolution 2 This way, the External Manager is still in place to ensure continuity in daily operations, prevent loans review etc and even assist the Trustee in setting up an Internal Manager. To ensure commitment from existing management staff, the Trustee will engage most, if not all, of these individuals to make up the Internal Manager.
|
||||
| Useful To Me Not Useful To Me | |||||