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Armchair evaluation, without going to the ground?
Jerry Low Chin Yee, the unitholder of Sabana REIT who complained to the CAD, is questioning how Colliers, Savills and Knight Frank could have arrived at exactly the same valuation for the property. &ldquo In order for all three to come up with the exact valuation figure, they must have used the same future rental income, same assumed discount rate, same forecasted 30 years rent renewal payable and the same estimated terminal value etc," he says in his complaint to the CAD, a copy of which The Edge Markets has seen.
&ldquo Colliers, Savills and Knight Frank all agree that the Changi South property is worth exactly $23m. I can only hypothesize that they were given the same exact figures to value the property,&rdquo alleges Low.
If this is true, it begs the question of objectivity and independence of these and past valuation reports, says Low.
Usually, REITs don&rsquo t issue rights at a severely discounted price to it&rsquo s NAV unless they are in financial distress, and the recent rights issue from Sabana was heavily discounted, but Sabana isn&rsquo t in a financially distressed position. So what gives?
Well it turns out that having a REIT with a sponsor is a double-edged sword particularly if the REIT made some purchases which are of a questionable nature in terms of valuation and yield accretion, and the REIT manager prices the rights issue to finance the purchases at a very high discount to it&rsquo s recent trading price, compared to other REITs which do not discount the rights much, unless in financial distress due to economic climate and/or business continuity issues. In essence, this deal seems to heavily favour two parties &ndash the sponsor (including the REIT manager), and new investors, who will see that the traded price of the REIT is way below the NAV, even lower than the other REITs, considering that other REITs in the same property segment are trading at a discount to book recently, due to headwinds in the Singapore economy.
Ultimately in voting u need the % to win...
Somebody shld try tally the vote to estimate if even got chance ...
Somebody shld try tally the vote to estimate if even got chance ...
Clickable link
http://www.theedgemarkets.com.sg/article/disgruntled-sabana-reit-unitholder-lodges-complaint-cad-over-valuation-changi-south-property
investshare ( Date: 14-Feb-2017 20:59) Posted:
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out the incompetent and greedy management.
Have what it takes to get rid of the unscrupulous manager. Stand united we shall overcome.
investshare ( Date: 14-Feb-2017 20:59) Posted:
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By:
Goola Warden
Tue, 02/14/2017 - 19:50
SINGAPORE (Feb 14): A disgruntled Sabana REIT unitholder has lodged a complaint to the white-collar crime department of the Singapore police against the property valuation houses of Colliers, Savills and Knight Frank.
Once and for all, get rid of the manager
I own Keppel REIT too. They are not the same. First, Keppel REIT is on office REIT but not industrial
Keppel REIT bought MBFC Towers 3 at about 2% discount from the sponsor as compare to 2 independent valuations in 2014. Athough the DPU remains stable, the asset has appreciated over the last 2 years. They had not raised any rights issue to fund the purchase so as not to dilute the NAV, in fact the NAV went up. Worst still, Sabana raised rights issue with steep discount that diluted the share values that benefit the new unit holders at the expense of the many long term unit holders. How can that be the same? I have vested interest in Keppel REIT too.
serious ( Date: 12-Feb-2017 13:40) Posted:
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Selling snake oil in this thread .
Yes, do something. Dont be NATO.
And no point of going for courses or training just to sell off or remove the manager.
Dont talk and talk and attend courses.
YEAH...
TALK IS FREE..EGO BUILDING EXERCISE..DO SOMETHING
ACTIVIST_SPEAKS ( Date: 12-Feb-2017 13:49) Posted:
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Koppel reit did the same , even more and big time , what is new ?
ehclim ( Date: 12-Feb-2017 13:07) Posted:
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Clickable link
https://www.youtube.com/watch?v=D2kUxI8dh_w& feature=youtu.be
ehclim ( Date: 12-Feb-2017 12:37) Posted:
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MAS can add/change ruling, as they did with gearing ratio
https://www.nracapital.com/research/rpt1507453266/mas-announces-new-guidelines-for-the-singapore-reit-sector
serious ( Date: 12-Feb-2017 12:43) Posted:
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If you are buying a industrial property without any accretive income than what are you buying for. To enrich the manager or help the sponsor to unload the unwanted asset?
ehclim ( Date: 12-Feb-2017 12:55) Posted:
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It is a guideline only. They have to adhere to the industrial norm. I think in Law means implied. As a layman, somethings need not to spell clearly in the guideline. Maybe someone can comment on this.
serious ( Date: 12-Feb-2017 12:43) Posted:
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If what the manager has done so far are within the guildline of MAS , what can MAS do ?
Hear the expert' s analysis on Sabana manager response.
https://www.youtube.com/watch?v=D2kUxI8dh_w& feature=youtu.be
MAS cannot maintains silent if we, small retail unit holders continue to assert pressure for fair and equitable deal from the REIT managers including Sabana.
junction ( Date: 12-Feb-2017 11:07) Posted:
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