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SABANA REIT

Quarz: Setting up internal manager for Sabana Reit should take no more than 3 to 4 months

Wong Pei Ting
Published Wed, Aug 23, 2023 · 5:57 pm

In an open letter on Wednesday (Aug 23), Quarz said HSBC Institutional Trust Services would be prejudicing the interest of the Reit?s unitholders if it causes any delays in the internalisation process.

ACTIVIST investor Quarz Capital has declared that the trustee of Sabana Industrial Real Estate Investment Trust (Sabana Reit) should take no more than three to four months to set up a new internal Reit manager.

If the trustee, HSBC Institutional Trust Services, fails to do so within that time frame, the interest of the Reit?s unitholders would be prejudiced, said Quarz in an open letter on Wednesday (Aug 23).

The activist investor, which holds units of Sabana Reit, said it came up with the three- to four-month window from its engagement with stakeholders, service providers and professionals with strong track records in setting up new Reit managers, following the Reit?s Aug 7 extraordinary general meeting.


Quarz said in the letter: ?All (of them) outlined clear and straightforward processes which the trustee can set up and license the internal manager, due to the transparent and precise application process and licensing requirements provided by MAS (the Monetary Authority of Singapore).?

They agreed that the preparatory work required to submit the application for the licence to MAS should not take longer than three to four months, Quarz pointed out.

It also expressed confidence in the level of expertise and number of precedent cases that would support the trustee in expediting the setup of the internal manager, and noted that MAS has approved more than 45 Reit management and 1,000 capital markets services fund management licences.


Quarz also noted that a number of law firms have strong track records in this area of work, having set up more than five new Reit managers each such firms can ?strongly support? Sabana in this process.

Quarz said that since HSBC Institutional Trust Services has repeatedly stated that its responsibility is to support unitholders and act in their best interests, it should push forward the internalisation ?swiftly and decisively?.

This means that, while internalisation has to happen by the Reit?s April 2024 annual general meeting, the trustee should give unitholders a clear, detailed timeline of the process, for the sake of accountability and transparency, it said. The trustee should also give a breakdown of the amount of time needed for preparatory work before submitting the application to MAS, it added.

In so saying, Quarz stressed: ?We remind the trustee that any delay in the setup process of the new internal manager clearly prejudices the interest of all unitholders.?

It reiterated: ?Any delay in the setup prejudices the interest of all unitholders and is in conflict with the trustee?s key responsibility to safeguard unitholders.?

 

Esr already lost twice, temporary injunction and then permanant injunction lol..have to pay cost to Sabana manager and Quarz... the more they do this, the more shareholders understand what they stand for
 

aragosta      ( Date: 23-Aug-2023 11:36) Posted: --- Post Removed by User ---

 

Yes, ESR so quiet for two weeks. Also think they might be working on sth..... Offer is possible any day I think..... Current level is big buying opportunity!! 

sangsang1      ( Date: 22-Aug-2023 18:34) Posted: https://omny.fm/shows/moneyfm-morning-show/bigger-picture-sabana-reit-heads-into-uncharted-te heard the above on money fm last week  Would not be surprised that they are working on it and picking up shares in the market    they last filed their shareholding by buying at 43 cents and also increased their stake by alot at current levels.

 

https://omny.fm/shows/moneyfm-morning-show/bigger-picture-sabana-reit-heads-into-uncharted-te
heard the above on money fm last week 
Would not be surprised that they are working on it and picking up shares in the market    they last filed their shareholding by buying at 43 cents and also increased their stake by alot at current levels.

 

suspect Tong had to sell more shares. All the counters he owned like ESR, OUE Commercial, Sabana all got hit. 
Good chance to top up more cheap cheap!!

 

Would be good if sabana provides updates and timeline on internalization of the manager. This will help to minimise the uncertainty and hence the price of the reit. The next 12 months may be choppy but it should be all pistons working from here on.😀

 

http://dividendpassiveincome.blogspot.com/2023/08/sabana-reit-unitholders-bumped-off.html

sabana shareholders in best of both world now.. once manager is formed, get dividend increased... or ESR buy shares to revote their manager in again or buyout?   

 

https://www.morningstar.com/stocks/singapore-reits-removal-sabana-reit-manager-has-positive-implication-investors

Sabana REIT&rsquo s unitholders have voted to remove ESR Group as its manager and internalize the REIT management function. This move is unprecedented in Singapore  HMN, but we think it has positive implications for the industry. This event occurred because activist investor Quarz Capital led the push. As ESR Group holds around 21% of Sabana REIT compared with Quarz Capital&rsquo s 14%, ESR Group only held a slight advantage going into the vote. Ultimately, we think ESR Group lost the vote because of concerns about potential conflicts of interest&mdash ESR Group is the sponsor of more than one industrial REIT in Singapore&mdash and the perception that Sabana REIT has underperformed its peers due to poor management by ESR Group.

 

ELOG REIT is the REIT that really needs to have an internalised manager

sealTeam3      ( Date: 11-Aug-2023 18:22) Posted: woah ESR Reit and ESR Group stocks down so much today. I think people are starting to realize these are shitty stocks, questionable business models... ESR group stock down 25% YTD!!!  sinking....

 

Pick up some more units today. Opportunity to average down. 😀

 

nah.. i think everybody here agrees the right term for you is " SORE LOSER"    

 

luckyguy3      ( Date: 11-Aug-2023 13:52) Posted: Saying things or stating opinion that is different from u = fearmongering? I quote u: " At a solid 39.5 cents right now. I think good news will come soon and unit price will gain traction.    " U also guessing only. Same as those whose opinion differ from urs including me. I think the share price will eventually tank to near 30 cents as the internalisation takes longer than expected and DPU suffers as a result. I also predicting. So if i voice opposing view = fearmongering  then u will be considered " cheerleading" . Same applies to u too. UNLESS u can show REAL DATA that internalisation is working and not just " think" RumbaRambo      ( Date: 11-Aug-2023 12:43) Posted: Correct, ehclim! Let' s not get carried away by fearmongering. Sabana dropping to 30cents is nonsense!!! At a solid 39.5 cents right now. I think good news will come soon and unit price will gain traction.   Let' s not forget that it' s holiday week in SG, many people off from work, so no decision making right now.

 

woah ESR Reit and ESR Group stocks down so much today. I think people are starting to realize these are shitty stocks, questionable business models... ESR group stock down 25% YTD!!!  sinking.... 

 

In US, all the REITs have internal manager. SG is just lacking behind and need to catchup.

luckyguy3      ( Date: 11-Aug-2023 13:56) Posted: Some of you say that if anyone who voice opposing views from urs and that the internalisation is bad = fearmongering. Then I would consider that those who keep predicting/guessing that the internalisation is good as " cheerleading" because the internal manager is not even found yet and u all talking about those wonderful outcome when nothing is even being done.

 

lol..  think strategically la... 3 big shareholders probably fighting for shares... and now reit cannot do placement and rights...
If ESR wants to resurrect their manager, they will probably have to do a takeover
If the share price goes lower, the 3 big shareholders will likely top up
where do you think the share price will go? 
That' s why sabana shareholders in the best of worlds

 

Some of you say that if anyone who voice opposing views from urs and that the internalisation is bad = fearmongering.

Then I would consider that those who keep predicting/guessing that the internalisation is good as " cheerleading" because the internal manager is not even found yet and u all talking about those wonderful outcome when nothing is even being done.

 

Saying things or stating opinion that is different from u = fearmongering?

I quote u: " At a solid 39.5 cents right now. I think good news will come soon and unit price will gain traction.    "

U also guessing only. Same as those whose opinion differ from urs including me. I think the share price will eventually tank to near 30 cents
as the internalisation takes longer than expected and DPU suffers as a result. I also predicting. So if i voice opposing view = fearmongering 
then u will be considered " cheerleading" . Same applies to u too. UNLESS u can show REAL DATA that internalisation is working and not just " think"

RumbaRambo      ( Date: 11-Aug-2023 12:43) Posted: Correct, ehclim! Let' s not get carried away by fearmongering. Sabana dropping to 30cents is nonsense!!! At a solid 39.5 cents right now. I think good news will come soon and unit price will gain traction.   Let' s not forget that it' s holiday week in SG, many people off from work, so no decision making right now.

 

Correct, ehclim! Let' s not get carried away by fearmongering. Sabana dropping to 30cents is nonsense!!! At a solid 39.5 cents right now. I think good news will come soon and unit price will gain traction.   Let' s not forget that it' s holiday week in SG, many people off from work, so no decision making right now. 

 

Indeed most of the experts beholds to their pay master and their opinions are biased and not objective. Anyway, Sabana unitholders know what they want and they are not fear of scare tactics adpoted by the Manager.

kiseki_2818      ( Date: 11-Aug-2023 10:53) Posted: i mean all of us here are as good or even better than the so called " expert" , have fun and earn $$. luckyguy3      ( Date: 10-Aug-2023 16:02) Posted: Yup.. the so called experts from DBS or Glass Lewis or ISS and trust managers cannot even be trusted so u mean all these Sabana cheer leader users here can be trusted?.  .

 

i mean all of us here are as good or even better than the so called " expert" , have fun and earn $$.

luckyguy3      ( Date: 10-Aug-2023 16:02) Posted: Yup.. the so called experts from DBS or Glass Lewis or ISS and trust managers cannot even be trusted so u mean all these Sabana cheer leader users here can be trusted?.  .   kiseki_2818      ( Date: 10-Aug-2023 14:57) Posted: think so call expert, including unit trust managers, do not dare even to guarantee 2% return..so hee.." expert" . they only hope u to follow their instructions, so they can get $$$$ easily

 

Strange Luckyguy.  The decision is to change and internalise.  If you do not like it, just depart all your holdings.  Why for you cry here to all of us?