Alpha Integrated RE    Last:0.48   -

SABANA REIT

Oh, that' s good news.

Tipster88      ( Date: 23-Nov-2020 14:57) Posted: I have verified with Boardroom Corporate & Advisory Services Pte Ltd, they informed to resubmit the forms to supercede the previous submission....  pkli899      ( Date: 20-Nov-2020 21:02) Posted: Oh, this is tricky. Maybe check with Boardroom....see whether can retrieve the forms and send fresh ones that include the newly acquired shares.

 

Waiting for what?

lukewong82      ( Date: 23-Nov-2020 14:47) Posted: either way failure or success, sabana share price will chiong. Have not voted yet.. still waiting laksaman57      ( Date: 23-Nov-2020 12:33) Posted: Withholding sabans dpu distribution that will keep it's share price depressed while ESR distribute dpu which helped kept price up is so ridiculous. Sabana price will cheong once merger get rejected

 

I have verified with Boardroom Corporate & Advisory Services Pte Ltd, they informed to resubmit the forms to supercede the previous submission.... 

pkli899      ( Date: 20-Nov-2020 21:02) Posted: Oh, this is tricky. Maybe check with Boardroom....see whether can retrieve the forms and send fresh ones that include the newly acquired shares.   Tipster88      ( Date: 20-Nov-2020 20:44) Posted: Already sent in proxy forms, it bought more today, can resubmit forms again for the additional units? Else how?

 

either way failure or success, sabana share price will chiong. Have not voted yet.. still waiting

laksaman57      ( Date: 23-Nov-2020 12:33) Posted: Withholding sabans dpu distribution that will keep it's share price depressed while ESR distribute dpu which helped kept price up is so ridiculous. Sabana price will cheong once merger get rejected ! lukewong82      ( Date: 23-Nov-2020 12:29) Posted: both ways success or failure.. once uncertainty removed, sabana share price sure chiong.. 40 cents.

 

Withholding sabans dpu distribution that will keep it's share price depressed while ESR distribute dpu which helped kept price up is so ridiculous.
Sabana price will cheong once merger get rejected !

lukewong82      ( Date: 23-Nov-2020 12:29) Posted: both ways success or failure.. once uncertainty removed, sabana share price sure chiong.. 40 cents.. Observers      ( Date: 23-Nov-2020 09:57) Posted: ESR cannot vote, I think this EGM resolution hard to go thru.

 

both ways success or failure.. once uncertainty removed, sabana share price sure chiong.. 40 cents..

Observers      ( Date: 23-Nov-2020 09:57) Posted: ESR cannot vote, I think this EGM resolution hard to go thru.

 

" ...CPFIS Investors and SRS Investors who wish to vote at the Scheme Meeting should approach their respective CPF Agent Banks or SRS Agent Banks as soon as possible by 5.00 p.m. on
24 November 2020 ..."

laksaman57      ( Date: 20-Nov-2020 15:12) Posted: "For persons (including CPFIS Investors and SRS Investors) who hold Sabana Units through relevant intermediaries, ...... should approach their respective relevant intermediary as soon as possible to specify voting instructions. CPFIS Investors and SRS Investors who wish to vote at the Scheme Meeting should approach their respective CPF Agent Banks or SRS Agent Banks as soon as possible by 5.00 p.m. on 24 November 2020, being at least seven (7) Business Days before the date of the Scheme Meeting (4 December 2020). " laksaman57      ( Date: 20-Nov-2020 09:32) Posted: Gentle reminder to use the tick symbol ✅ in the 'against' box. DO NOT USE the cross symbol ❎ , in case they use it as excuse to void your form

 

ESR cannot vote, I think this EGM resolution hard to go thru.

 

once EGM over, both ways fail or success, share price will rise becos of the impending distribution of retained dividends. If success, they will distribute out all the retained dividends before the actual merging.

 

 

Dun understand estimate this group of share/reits holders that are not interested in the politics but in the share price. Think better convince them through real action supporting Sabana share price.

lukewong82      ( Date: 22-Nov-2020 18:44) Posted: I just vested on Friday. Right now solely based on share price of 35 cents vs ESR 39 cents, I am sitting on the fence. If I see Sabana reit share price falls while ESR reit share price rises, I have the incentive to vote yes for the merger. BUT if i see sabana share price approaching ESR reits, then I may vote NO. I think there are quite a lot of Sabana reit holders who are not interested in the " politics" that is going on. We vote solely based on how it will benefit us in terms of share price. I think if anyone oppose the merger needs to convince this group of  sitting on the fence shareholders. Just like politicians who may promise a lot but achieve very little, right now  funds are sweet talking small shareholders  into voting no  and promise many good things to come for Sabana. I dun trust both sides, I just trust how i can gain from the share price. Think is wise for the funds to show action and put up a 10000 lots buy support to match  ESR share price  to convince those sitting on the fence who only worry is the share price and not the politics. So I will vote according to the share price and not the stories from BOTH sides. Cheers savesabanareit      ( Date: 22-Nov-2020 15:19) Posted: A funny, baseless nonsenical hypothesis of why there is selling pressure now: it is very likely the sellers selling at .35-.36 will most probably immediately disappear once voting closes at 1 Dec 2020 why is anyone selling at this level when you will most probably have a dividend of 5+% in Jan 2021 which is just 1+mth later (retained dividend + 2H2021 dividend), interest cost is coming down, the retail at lorong chuan will complete which will add more dividend, and if they get the internalisation through, dividend will further increase.....world is also recovering from COVID-19 who is incentivise to get people to agree to the lowball merger? Take advantange of the opportunity to accumulate!

 

I just vested on Friday. Right now solely based on share price of 35 cents vs ESR 39 cents, I am sitting on the fence. If I see Sabana reit share price falls while ESR reit share price rises, I have the incentive to vote yes for the merger. BUT if i see sabana share price approaching ESR reits, then I may vote NO.

I think there are quite a lot of Sabana reit holders who are not interested in the " politics" that is going on. We vote solely based on how it will benefit us in terms of share price.

I think if anyone oppose the merger needs to convince this group of  sitting on the fence shareholders.

Just like politicians who may promise a lot but achieve very little, right now  funds are sweet talking small shareholders  into voting no  and promise many good things to come for Sabana. I dun trust both sides, I just trust how i can gain from the share price.

Think is wise for the funds to show action and put up a 10000 lots buy support to match  ESR share price  to convince those sitting on the fence who only worry is the share price and not the politics.

So I will vote according to the share price and not the stories from BOTH sides.

Cheers

savesabanareit      ( Date: 22-Nov-2020 15:19) Posted: A funny, baseless nonsenical hypothesis of why there is selling pressure now: it is very likely the sellers selling at .35-.36 will most probably immediately disappear once voting closes at 1 Dec 2020 why is anyone selling at this level when you will most probably have a dividend of 5+% in Jan 2021 which is just 1+mth later (retained dividend + 2H2021 dividend), interest cost is coming down, the retail at lorong chuan will complete which will add more dividend, and if they get the internalisation through, dividend will further increase.....world is also recovering from COVID-19 who is incentivise to get people to agree to the lowball merger? Take advantange of the opportunity to accumulate!  lukewong82      ( Date: 22-Nov-2020 11:26) Posted: the funds that oppose the merger can buy more sabana reits and put a queue of 10000lots at 39 cents  as they are rich enough to do that. Then with their increase stake, they can then exert their pressure for the manager of sabana to be removed after the merger has failed.

 

A funny, baseless nonsenical hypothesis of why there is selling pressure now:

it is very likely the sellers selling at .35-.36 will most probably immediately disappear once voting closes at 1 Dec 2020
why is anyone selling at this level when you will most probably have a dividend of 5+% in Jan 2021 which is just 1+mth later (retained dividend + 2H2021 dividend), interest cost is coming down, the retail at lorong chuan will complete which will add more dividend, and if they get the internalisation through, dividend will further increase.....world is also recovering from COVID-19

who is incentivise to get people to agree to the lowball merger?

Take advantange of the opportunity to accumulate! 

lukewong82      ( Date: 22-Nov-2020 11:26) Posted: the funds that oppose the merger can buy more sabana reits and put a queue of 10000lots at 39 cents  as they are rich enough to do that. Then with their increase stake, they can then exert their pressure for the manager of sabana to be removed after the merger has failed.   lukewong82      ( Date: 22-Nov-2020 11:23) Posted: why cant they just pushed up the share price of sabana to be  slightly above  ESR reits, quite easy to do as number of Sabana' s shares traded is not very huge, then no one will vote for the merger already right? At the current price of 35 cents vs ESR 39 cents, it is worth for sabana holders (those sitting on the fence) to vote FOR the merger. So just push it to 39 or above, those sitting on the pence will vote against the merger .

 

 
一 旦 胜 宝 单 位 持 有 人 (Sabana REIT Unitholders)反 对 跟 胜 宝 与   ESR合 并 ，   Quarz和   Black Crane计 划 提 议 罢 免 现 有 经 理 人 ， 并 设 立 胜 宝 内 部 经 理 人 。
 
委 任 内 部 经 理 人 就 无 需 支 付 管 理 费 给   ESR Cayman， 胜 宝 每 单 位 派 息 （   DPU） 即 刻 提 高 约   7.5％ 。 通 过 消 除 与   ESR潜 在 的 冲 突 ， 能 让 所 有 胜 宝 单 位 持 有 人 的 利 益 一 致 ， 从 而 让 胜 宝 工 业 信 托   (Sabana REIT)  完 全 实 现 价 值 。
 
　 　   有 了 专 注 、 目 标 一 致 、 称 职 和 负 责 任 的 管 理 ， 胜 宝 工 业 信 托 有 潜 力 将   DPU提 高   [40％   ]以 上 ， 派 息 收 益 率 超 过 约   9％ ， 并 在 接 下 来 的   12至   18个 月 内 有 升 值 潜 能 。 这 可 消 除 自 成 立 以 来 ， 由 于 管 理 不 善 及 冲 突 导 致 的 胜 宝 单 位 价 格 与 净 资 产 值 之 间 的 折 价 。
 
　 　 Quarz资 本 和 Black Crane计 划   投 票 反 对 胜 宝 和   ESR房 地 产 投 资 信 托 的 合 并 建 议   。
 
　 　 基 于 以 下 原 因 ， 我 们 认 为 拟 议 中 的 合 并 将 破 坏 胜 宝 单 位 持 有 人 的 价 值 ：
 

1. 相 对 账 面 价 值 0.51元 （ 2019年 12月 为 0.56元 ） ， 胜 宝 工 业 信 托   高 于   ~30％ 的 折 价 是 前 所 未 见 的   ；
2. 合 并 对 DPU不 利 ， 若 胜 宝 工 业 信 托 保 持 独 立 ， 我 们 估 计   2021年 的 DPU将 比 2020年 高 出 超 过 20％   ， 理 由 是 ：

• 罗 弄 泉 151号 （ 151 Lorong Chuan） 的 零 售 部 分 完 工 ， DPU可 增 加 0.301分 （ +13％ ） 。
• 拨 回 180万 元 一 次 性 坏 账 减 值 准 备 金 ， DPU可 增 加 0.17分 （ +7％ ）
• 提 高 资 产 负 债 率 、 出 租 率 并 降 低 融 资 成 本 ， 可 轻 易 让 DPU增 加 超 过 0.25分 （ +超 过 10％ ）

1. ESR房 地 产 信 托 投 资 组 合 ：    

• 杠 杆 水 平 显 著 较 高 ， 约 42％ （ 若 包 括 永 久 证 券 ， 约 为 47％ ）   ， 是 新 加 坡 交 易 所 上 市 的 工 业 房 地 产 投 资 信 托 当 中 最 高 的 ； 胜 宝 的 杠 杆 水 平 约 为 31％ 至 33％ ；
• ESR REIT的 投 资 组 合 中 超 过 20％ 的 土 地 租 约 为 20年 或 更 少   ， 需 要 投 入 额 外 资 本 以 延 长 租 约 （ 基 于 杠 杆 比 率 较 高 ， 可 能 需 要 筹 集 资 本 ） ； 相 比 之 下 ， 胜 宝 工 业 信 托 投 资 组 合 中 ， 只 有 　 约 6.4％ 土 地 租 约 为 20年 或 更 少 ；
• UE Bizhub East（ 占 投 资 组 合 约 15％ ） 空 置 率 从 约 10％ （ 2017年 ） 增 加 到 约 36％ （ 2019年 ）    

 
Quarz资 本 和 Black Crane计 划 在 短 期 内 召 开 特 别 股 东 大 会 ， 寻 求 把 胜 宝 经 理 人 内 部 化 。
 
内 部 信 托 经 理 附 属 胜 宝 工 业 信 托 并 代 表 所 有 胜 宝 单 位 持 有 人
 
内 部 信 托 经 理 的 主 要 目 标 ， 是 缩 小 胜 宝 单 位 显 著 的 巨 大 净 资 产 值 折 让 ， 通 过 以 下 方 式 和 ／ 或 通 过 出 售 全 部 或 部 分 胜 宝 投 资 组 合 ， 将 剩 余 资 本 返 还 给 单 位 持 有 人 ， 改 进 胜 宝 工 业 信 托 的 表 现 。
 
我 们 确 认 了 五 个 主 要 方 式 ， 可 将 单 位 持 有 人 的 价 值 和   DPU提 高   [40％   ]以 上 ， 并 取 得   9％ 以 上 的 派 息 收 益 率 ：
 

1. 罗 弄 泉 151号 零 售 部 分 在 2021E年 第 一 季 及 时 完 工 并 出 租 ， 每 年 可 创 造 320万 元 可 派 发 收 入 。 DPU有 潜 能 增 加 0.301分 （ DPU上 升 空 间 约 13％ ） 。
2. 将 融 资 成 本 从 3.8％ 降 低 至 约 3.2％ （ 与 同 业 相 比 ， 胜 宝 工 业 信 托 基 金 的 杠 杆 比 率 最 低 ， 但 所 支 付 的 融 资 成 本 最 高 ） 。 每 年 可 节 省 170万 元 ， DPU有 潜 能 提 高 0.16分 （ DPU上 升 空 间 约 7％ ） 。
3. 在 0.55元 的 净 资 产 值 （ 考 虑 和 估 计 到 零 售 部 分 完 工 及 空 置 率 下 跌 的 账 面 值 增 加 ） ， 把 杠 杆 率 提 高 至 36％ ， 以 购 买 6000万 元 的 收 益 增 值 资 产 或 回 购 胜 宝 单 位 。 DPU有 潜 能 增 加 0.154分 （ DPU上 升 空 间 约 5％ ） 。
4. 房 地 产 信 托 经 理 内 部 化 每 年 可 节 省 200万 元 费 用 （ 对 比 向 附 属 ESR Cayman的 胜 宝 工 业 信 托 经 理 支 付 450万 元 ） 。 DPU有 潜 能 增 加 0.19分 （ DPU上 升 空 间 约 7.5％ ）
5. 将 入 驻 率 从 约 77％ 优 化 至 约 82％ ， 每 年 生 成 额 外 300万 元 可 派 发 收 入 ， DPU有 潜 能 增 加 0.28分 （ DPU上 升 空 间 约 12％ ）

 
胜 宝 内 部 房 地 产 投 资 信 托 经 理 也 将 加 速 发 展 罗 弄 泉 巷 151号 （ 新 科 技 园 ） 和 本 茱 鲁 巷 33号 和 35号 的 未 开 发 总 楼 面 面 积 ， 以 增 加 租 金 收 入 。
 
距 离 中 央 商 业 区 只 有 15分 钟 的 新 科 技 园 ， 将 建 造 超 过 约 20万 平 方 英 尺 的 商 业 园 空 间 。 这 个 在 罗 弄 泉 地 铁 站 正 对 面 的 地 段 ， 也 将 打 造 一 个 令 人 振 奋 的 零 售 部 分 。 新 科 技 园 空 间 适 合 主 要 租 户 型 业 者 ， 尤 其 是 有 意 把 整 个 营 运 归 纳 在 一 个 高 规 格 设 施 内 的 科 技 业 者 。
 
　 　 本 茱 鲁 巷 33号 和 35号 的 70万 平 方 英 尺 潜 在 总 楼 面 面 积 ， 相 当 具 规 模 。 它 就 在 宝 泽 亚 太 房 地 产 信 托 （ Aims APAC REIT） 隔 邻 ， 后 者 位 于 本 茉 鲁 巷 27号 ， 是 一 个 相 当 新 的 多 层 坡 道 式 仓 库 和 物 流 设 施 （ 就 在 胜 宝 资 产 后 面 ） 。 毗 邻 本 茉 鲁 巷 31号 的 丰 树 物 流 信 托 还 有 12年 租 约 。
 
内 部 房 地 产 信 托 经 理   可 以 和 第 三 方 合 作 ， 把 本 茉 鲁 巷 33号 和 35号 有 效 发 展 成 一 个 先 进 物 流 设 施 ， 为 胜 宝 单 位 持 有 人 增 值 。
 
内 部 房 地 产 投 资 信 托 经 理 可 以 在 没 有 任 何 冲 突 的 大 前 提 下 ， 探 索 任 何 可 终 结 净 资 产 值 折 价 状 况 的 交 易 ， 如 与 其 他 房 地 产 投 资 信 托 合 并 ， 或 脱 售 房 地 产 投 资 信 托 或 所 有 相 关 资 产 以 套 现 ， 又 或 结 合 以 上 所 述 ， 为 单 位 信 托 持 有 人 创 造 比 采 用 上 述 单 一 策 略 更 高 的 价 值 。
 
Quarz和 Black Crane的 利 益 ， 和 所 有 独 立 单 位 持 有 人 是 一 致 的 。
 
Peter Kennan说 ： & ldquo  胜 宝 的 组 合 给 予 机 构 投 资 者 如 私 募 股 权 基 金 、 房 地 产 经 理 和 家 族 办 公 室 等 ， 在 新 加 坡 具 吸 引 力 的 工 业 房 地 产 领 域 ， 加 速 扩 大 至 相 当 规 模 版 图 的 机 会 。 有 鉴 于 电 子 商 务 的 高 速 结 构 性 增 长 ， 像 胜 宝 这 类 工 业 和 物 流 资 产 需 求 相 当 高 。 & rdquo
 
Quarz和 Black Crane已 经 和 几 个 潜 在 合 作 方 洽 谈 ， 他 们 都 在 新 加 坡 和 区 域 的 商 业 和 工 业 房 地 产 领 域 有 专 业 知 识 和 良 好 表 现 纪 录 。
 
Jan Moermann说 ： & ldquo  目 前 归 属 ESR Cayman的 胜 宝 房 地 产 投 资 信 托 经 理 无 法 采 取 有 效 做 法 ， 来 终 结 净 资 产 值 折 价 的 状 况 ， 现 在 还 建 议 和 另 一 个 同 样 归 属 ESR Cayman的 房 地 产 投 资 信 托 进 行 破 坏 价 值 的 合 并 。 显 然 ， 胜 宝 的 单 位 信 托 持 有 人 需 要 一 个 独 立 经 理 来 恢 复 信 托 的 价 值 。 & rdquo
 
数 以 百 计 拥 有 相 当 股 权 的 胜 宝 单 位 持 有 人 ， 已 在   WWW.SAVESABANAREIT.COM表 达 对 胜 宝 工 业 信 托 管 理 层 的 关 注 ， 并 对 当 前 合 并 提 案 持 反 对 意 见 。
 
许 多 单 位 持 有 人 表 达 了 强 烈 意 愿 ， 要 撤 掉 胜 宝 工 业 信 托 的 经 理 人 ，   换   一 个 更 符 合 他 们 的 利 益 ， 并 有 动 力 释 放 单 位 持 有 人 价 值 的 经 理 人 。
 
ESR和 胜 宝 工 业 信 托 的 经 理 人 主 要 归 属 ESR Cayman， 它 们 都 是 今 年 以 来 在 新 加 坡 交 易 所 挂 牌 的 工 业 房 地 产 信 托 当 中 表 现 最 差 的 。 持 续 和 严 重 的 落 后 表 现 ， 明 确 说 明 了 现 有 管 理 团 队 和 其 赞 助 人 的 执 行 能 力 。
 
ESR和 胜 宝 工 业 信 托 的 经 理 人 仍 无 力 地 捍 卫 规 模 效 益 ， ESR房 地 产 投 资 信 托 今 年 以 来 的 表 现 比 规 模 更 小 的 同 行 差 许 多 。 这 足 以 证 明 ， 和 规 模 相 比 ， 管 理 团 队 的 能 力 和 素 质 对 房 地 产 投 资 信 托 的 表 现 起 更 关 键 作 用 。
 
尽 管 时 任 经 理 人 声 称 罢 免 经 理 人 会 触 发 贷 款 违 约 条 款 ， Quarz和 Black Crane已 经 和 多 家 金 融 机 构 及 投 资 者 讨 论 ， 他 们 都 对 提 供 融 资 给 胜 宝 投 资 组 合 ， 表 现 出 浓 厚 兴 趣 。
 
Jan Moermann说 ： & ldquo  目 前 的 低 利 率 环 境 ， 提 供 胜 宝 工 业 信 托 一 个 具 吸 引 力 的 机 会 ， 能 够 以 较 低 利 率 融 资 ， 同 时 和 银 行 建 立 新 业 务 关 系 。 & rdquo
 
Quarz和 Black Crane计 划 在 近 期 内 提 议 罢 免 现 有 经 理 人 ， 并 设 立 胜 宝 内 部 经 理 人 。 我 们 呼 吁 所 有 单 位 持 有 人 投 票 支 持 委 任 新 的 内 部 经 理 ， 这 将 更 符 合 利 益 ， 以 及 有 可 能 提 高 每 单 位 派 息 （ DPU） 的 收 益 。
 
Quarz和 Black Crane将 于 2020年 11月 25日 晚 上 8时 15分 ， 为 所 有 胜 宝 工 业 信 托 单 位 持 有 人 召 开 网 络 大 会 ， 分 享 我 们 为 何 认 为 合 并 献 议 将 大 大 低 估 胜 宝 工 业 信 托 的 价 值 ， 也 破 坏 胜 宝 单 位 持 有 人 的 价 值 。 请 到   WWW.SAVESABANAREIT.COM登 记 ， 我 们 将 发 送 链 接 给 您 。
 
我 们 期 待 一 个 没 有 冲 突 、 重 新 注 入 活 力 的 胜 宝 工 业 信 托 ， 有 能 力 为 单 位 持 人 创 造 更 多 价 值 。

 

the funds that oppose the merger can buy more sabana reits and put a queue of 10000lots at 39 cents  as they are rich enough to do that. Then with their increase stake, they can then exert their pressure for the manager of sabana to be removed after the merger has failed.

 

lukewong82      ( Date: 22-Nov-2020 11:23) Posted: why cant they just pushed up the share price of sabana to be  slightly above  ESR reits, quite easy to do as number of Sabana' s shares traded is not very huge, then no one will vote for the merger already right? At the current price of 35 cents vs ESR 39 cents, it is worth for sabana holders (those sitting on the fence) to vote FOR the merger. So just push it to 39 or above, those sitting on the pence will vote against the merger .

 

why cant they just pushed up the share price of sabana to be  slightly above  ESR reits, quite easy to do as number of Sabana' s shares traded is not very huge, then no one will vote for the merger already right?

At the current price of 35 cents vs ESR 39 cents, it is worth for sabana holders (those sitting on the fence) to vote FOR the merger. So just push it to 39 or above, those sitting on the pence will vote against the merger .

 

Our eminent Prof Mak Yuen Teen has spoken!!!!!....................

REQUISITION OF EGM AT SABANA REIT: REGULATORS SHOULD WANT ANSWERS TOO
By Mak Yuen Teen

On November 10, 2020, Quarz Capital and Black Crane Capital, which advise entities that collectively hold more than 11% of Sabana REIT& rsquo s units, gave notice to the Sabana REIT manager to convene an EGM for Sabana REIT unitholders to consider passing five resolutions.

Mr Donald Han, the CEO of the manager, was quoted in a Business Times report on November 12 that the letter requisitioning the EGM is being taken seriously and that it was seeking advice from its advisers. Regarding the highly contentious re-designation of Ms Ng Shin Ein from non-independent to independent director, Mr Han & ldquo reiterated that her independence has been & lsquo thoroughly evaluated& rsquo .& rdquo

The notice requisitioning the EGM was given pursuant to Para 4.1(b) of Appendix 6 of the Code on Collective Investment Schemes (CCIS) which reads as follows: & ldquo a general meeting may be convened at the request in writing of not less than 50 participants or participants representing not less than 10% of the issued units in the property fund.& rdquo

Para 4.2 of the CCIS states: & ldquo In the convening and conduct of general meetings, regard should be had where appropriate to the relevant provisions of the Companies Act (Cap. 50) and principles in the Code of Corporate Governance 2012.& rdquo Section 176 of the Companies Act states that on receiving such a requisition, the directors shall & ldquo immediately proceed duly to convene an extraordinary general meeting of the company to be held as soon as practicable but in any case not later than 2 months after the receipt by the company of the requisition& rdquo .

Meanwhile, the manager is convening an EGM to approve proposed amendments to the Sabana trust deed for the proposed merger with ESR-REIT on December 4 at 2 pm, followed 30 minutes later by the scheme meeting to approve the merger.

The requisitionists face at least two potential challenges. First, the directors of Sabana REIT manager may decide not to convene the EGM on the grounds that the proposed resolutions are not valid resolutions, giving the reason that the resolutions deal with matters that are not under the purview of unitholders. Second, by the time the EGM they requisitioned is convened, the scheme meeting would almost certainly already have taken place (barring any regulatory intervention).

The first two resolutions are seeking greater transparency about: (1) the circumstances surrounding Ms Ng& rsquo s re-designation and any other relationships, arrangements or payments between her and ESR Cayman (the controlling shareholder of the managers of both ESR REIT and Sabana REIT) and (2) the circumstances surrounding the hiring of three ex-ESR employees at Sabana REIT manager.

I had on September 22 posted an article & ldquo Sabana REIT: Independent Overnight?& rdquo on this website questioning the re-designation of Ms Ng. On October 5, the Sabana REIT manager published a six-page response to my article justifying the re-designation. On October 27, I published an article & ldquo Trust Us, We are Really Independent& rdquo on this website, with a shorter version in the Business Times. The longer version responded point-by-point to the justifications provided by the manager. I said: & ldquo & hellip the response does not address the perception that she (Ms Ng) may be or feel obliged to support the current controlling shareholder of the manager especially as there were no details about the sale price and how it was determined, which I had raised.& rdquo I also asked: & ldquo Was she appointed with a view to supporting a certain strategy, which would raise questions about her independence?& rdquo

Those questions were based on my review of public information relating to Ms Ng& rsquo s history with the Sabana REIT manager, including her earlier service on the board from November 2010 to May 2017 the sale of her 4.5% indirect stake to a wholly-owned subsidiary of ESR Cayman her return to the board in August 2019 and her re-designation to independent director in November 2019. I did not receive any information from the requisitionists or any other sources when I wrote those articles. To me, they are natural questions to ask if a director has sold his or her stake to a controlling shareholder, and is then involved in a corporate action involving the controlling shareholder.

The questions about Ms Ng& rsquo s independence have not in my view being satisfactorily addressed even if the CEO of the manager claims that it has been & ldquo thoroughly evaluated& rdquo . In fact, the & ldquo addendum& rdquo published on September 21, more than five months after the release of the annual report on April 7 and nearly seven months after the date of the report of February 28, should rightly be called an & ldquo erratum& rdquo because the disclosures about Ms Ng were simply wrong.

In the annual report, under & ldquo Board Composition and Guidance& rdquo , it said:

& ldquo The Board currently consists of four Independent Non-Executive Directors , that is, they have no relationship with the Manager, its related companies, its substantial shareholders, or its officers that could interfere, or be reasonably perceived to interfere, with the exercise of the Director& rsquo s independent business judgment with a view to the best interest of the REIT, and they are able to exercise objective judgment on corporate affairs independently from the management and its substantial shareholders.  Furthermore, the Independent Directors are considered independent for the financial year under review under the Securities and Futures (Licensing and Conduct of Business) Regulations  because they are not substantial shareholders of the Manager and are not substantial Unitholders of the REIT,  they do not have management or business relationships with the Manager and its related companies as well as the REIT and its subsidiaries and they are independent from the substantial shareholder of the Manager and substantial Unitholders of the REIT& hellip & rdquo (emphasis mine).

The September 21 addendum no longer said that all the independent directors do not have business relationships and that they are all independent from every substantial shareholder of the Manager and every substantial unitholder of the REIT.   It now said that Ms Ng is not considered independent in accordance with these provisions of the regulations. However, the NC and the board have deemed her to be independent nevertheless.

The fact that the addendum was issued after the annual report & ndash and so long after & ndash clearly raises questions as to whether all the information relevant to determining Ms Ng& rsquo s independence was disclosed  by  the time when she was re-designated. If they were not, then the NC and the board would have re-designated her without adequate information. It cannot be acceptable to rely on disclosures made after the re-designation to justify the re-designation, in the same way that it is not acceptable to undertake a corporate action before the board has received the necessary information, properly considered the information and passed a board resolution.

I view Resolution 1(A) proposed by the requisitionists in this light. It is important to know if the necessary disclosures were made  before  Ms Ng was re-designated. The additional information sought may also cast further light on Ms Ng& rsquo s independence.

Resolution 1(B) questions whether the board simply relied on Ms Ng& rsquo s declaration or disclosures at face value or whether it made its own independent enquiries and investigations. This goes to the robustness of the process used by the board to deem Ms Ng as independent. The board should not be solely reliant on what a director discloses in determining independence.

However, Resolutions 1 and 2 in my view raise questions beyond the independence of Ms Ng and her re-designation. They also raise questions about the conduct of the various parties involved. The answers can either absolve these parties, or taint their conduct and the proposed merger.

For example, Resolution 1(C) asks about the date, price and valuation of various transactions involving ESR Cayman, Blackwood Investment Pte Ltd (which owned a 45% stake in Sabana REIT manager) and Ms Ng, and  whether Ms Ng received any other payments. If she sold her stake at a higher price or received other payments, then it raises the question as to why. Resolution 1(D) asks whether the board is aware of whether Ms Ng had played a role in the sale of the remaining 90% stake of Blackwood to ESR Cayman. The answers to 1(C) and 1(D) are relevant to my point about perception regarding whether Ms Ng may be or feel obliged to support the current controlling shareholder of the manager or to support a certain strategy, such as the merger.

One way or another, answers supported by evidence should be forthcoming. If the manager takes a technical position and refuses to disclose the information to unitholders, regulators should still make their own enquiries into the matters raised.

Coming on the heels of the Eagle Hospitality Trust (EHT) debacle, regulators must send a clear message that they expect the highest standards of corporate governance and transparency in the sector and that they will not hesitate to take action to protect the interests of unitholders & ndash even if we are not talking about a total meltdown as we are witnessing at EHT here.

https://governanceforstakeholders.com/2020/11/14/requisition-of-egm-at-sabana-reit-regulators-should-want-answers-too/

 

Hi Joelton, 

It seems like as Sabana REIT Manager cannot provide any track record justification on why they shd be retained as REIT Manager, they are trying to do ' fear mongering' to unsettle unitholders. This will not work.

We intend to provide a comprehensive and full rebuttal to Sabana REIT Manager' s statement in the next few days. 

While ESR REIT has continuously justified size benefits, ESR REIT is the worst performing SGX-listed industrial REIT YTD (even worse performance than Sabana REIT) despite it being larger than Sabana, AIMS APAC, Soilbuild and ARA Logos. We believe that the Quality of the management and portfolio are more important determinants to price performance and dividend upside.     

Quarz and Black Crane will be  conducting a webinar on Wednesday 815pm (25 November 2020)  to share our views on why the  proposed merger substantially undervalues Sabana REIT and is value destructive to Sabana unitholders.
We will also share the future plans  (forming an internalized REIT Manager, sale of assets) to potentially increase the unit price and dividend yield (+9%) of Sabana REIT.

Please RSVP on the SAVESABANAREIT.COM website.

We have also compiled a presentation to share our views and analysis on why unitholders should  VOTE AGAINST  the proposed merger. The setup of a new internalised Sabana REIT Manager for and owned by all unitholders will immediately increase DPU by +7.5%!

https://www.savesabanareit.com/open-letters
File name: VOTE AGAINST MERGER 21 Nov 2020

We look forward to a conflict free, re-energized Sabana REIT with strong prospects to increase unit price and dividend yield for all unitholders!

 

 

Yeah... Should trade towards high end of 40c to be fair...

marketuncle      ( Date: 21-Nov-2020 10:00) Posted: Anyway, based on yield (using similar comparable yields like ARA LOGOS and Soilbuild Trust at ~9%), my estimate for Sabana is about  1.05/ 0.09 x 4 ~ 46.7 cents. So yes, should go higher if the deal fall through. But I doubt Quarz and Black Crane and unlock that much ' ' value' ' they claim they could. ... ' ' Clarifying this, Quarz and Black Crane said that they do not intend to purchase the Reit manager from ESR-Reit. Rather, the internal manager " will be owned by all unitholders and for all unitholders" . Sabana Reit' s manager also questioned the estimate that Sabana Reit' s potential 2021 standalone DPU would be more than 20 per cent above the 2020 level, and projections for the annual net rental and distribution income for the retail component of 151 Lorong Chuan, at S$3.7 million and S$3.1 million respectively. " The Board finds that some of these claims are unrealistic," it added. It said that " the fact of the matter is that the Sabana Manager has not received any alternative offers for Sabana Reit and/or its assets" . If the merger is not approved at the EGM, the ESR-Reit manager and its concert parties will be restricted from making another offer for Sabana Reit, whether voluntary or mandatory, in the next 12 months.' ' https://www.businesstimes.com.sg/companies-markets/sabana-reit-manager-questions-internalisation-proposal