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SABANA REIT
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sealTeam3
Member |
07-Aug-2023 14:28
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Already too crowded there fighting for the top job!! Donald won?t stand a chance la
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luckyguy3
Master |
07-Aug-2023 14:19
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ESR-LOGOS shareholders do not mind Donald Han coming to work for them 
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BillionX
Senior |
07-Aug-2023 14:14
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Unit holders have spoken, Now the work to install a manager who reports to the unit holders starts. Hopefully Quartz will offer their expertise and assist in the implementation. 🙏 | ||||
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Observers
Elite |
07-Aug-2023 14:12
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Star of the show was the ayam penyet. Very delicious though the rice can be abit more lemak with coconut cream, ate it despite it being against doctors orders. Cake also very nice but could have portioned it smaller, rather I should have portioned it smaller myself. Prawn fried rice can fight Ding Tai Feng. Now that we get the most important things out of the way. My thoughts on this EGM outcome. Donald Han, and the movers of his team, will probably not stay on. If I were him, I rather my resume be with giant real estate operator ESR, than be an unknown, local Sabana Reit manager with limited networking opportunity. With ESR, given his talent running the reit, he probably has a super long runway within ESR global operations. Next, is the issue of internalization of the manager. Now that we have become the first to push towards internalization, how will the rest of the reit industry and their global powerhouse sponsors think of Sabana? Will they want us to succeed or secretly wish for our demise? For the record, I abstained for my tiny stake in Sabana. All the best to those who voted for change. |
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HVRRVH
Elite |
07-Aug-2023 14:04
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Yes, hard work has just began especially for the Trustee. Never in history they have to really ' work' but now they have to be actively involved. Meeting with banks, with current managers, establish internal manager framework, identify prospective managers, interview prospective managers and the list go on. That' s why I said kudos to Sabana unitholders. As a fellow reit investors, morally I have to stand with and stand by them.
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luckyguy3
Master |
07-Aug-2023 13:55
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ESR-LOGOS shareholders will want ESR manager to produce a super good result for ESR-LOGOS in 2H23. If not, they will demand internalisation too and kick out ESR. But all depends on how it goes with Sabana reit internalisation. If it fails, then ESR will capture Sabana reit with a merger with ESR-LOGOS at bargain price. Let' s see how it goes.
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sengkang
Master |
07-Aug-2023 13:54
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Quarz Capital seems able to convince the other ssh to vote for internalisation. Huat ahhhhh 🚀 🚀 🚀 👌
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WongKheeKai
Member |
07-Aug-2023 13:50
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This is definitely a very positive development for the REIT scene in the SG stock mkt | ||||
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HVRRVH
Elite |
07-Aug-2023 13:48
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A brand new SReits scene charted by Sabana' s unitholders! Thanks!!. This is a big challenge to status quote and in the months to come, it will surely have the attention of other reits managers and unitholders alike. A new page has turned and a new chapter has began. All involved in the SReits will be eagering puruse the story as it unfold. We hope it shed light that internal manager can work! All unitholders should own the manager in principle but the sponsors more often than not run the reit too with controlling stake or full ownership of the reit manager. Congrats to Sabana unitholders and sincere appreciation, I as a fellow reits investor, I would have to say Sabana unitholders are indeed very brave! | ||||
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asianguy
Senior |
07-Aug-2023 13:39
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https://www.businesstimes.com.sg/companies-markets/unitholders-sabana-reit-vote-remove-manager-575-vote-favourUnitholders of Sabana Reit vote to remove manager, with 57.5% of vote in favourUNITHOLDERS of Sabana Industrial Real Estate Investment Trust : M1GU 0% (Sabana Reit) voted to remove Sabana Real Estate Investment Management (SREIM) as its manager at its extraordinary general meeting (EGM) on Monday (Aug 7). The unitholders were voting on two resolutions, the first of which was to remove SREIM as the Reit&rsquo s manager as soon as practicable. Out of the some 691 million votes cast, 57.5 per cent were in favour of the resolution. The second resolution was to effect the internalisation of the Reit management function by incorporating a subsidiary wholly owned by the trustee, and appointing it to act as Sabana Reit&rsquo s manager. Out of about 691 million votes cast, 55.6 per cent were in favour. This comes after two months of arguments between Hong Kong-listed ESR Group, which owns SREIM, and activist investor Quarz Capital, on the internalisation.
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mike2867
Member |
07-Aug-2023 13:37
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胜 宝 工 业 信 托 （ Sabana Industrial REIT） 的 股 东 以 57.46%和 55.60%票 数 ， 批 准 撤 除 外 部 管 理 公 司 和 把 管 理 内 化 的 议 案 。
股 东 们 在 星 期 一 （ 8月 7日 ） 早 上 的 特 别 股 东 大 会 上 ， 作 出 了 上 述 决 定 。 胜 宝 股 东 两 敌 对 阵 营 这 次 激 烈 的 纷 争 ， 算 是 有 了 结 果 。 胜 宝 工 业 信 托 的 最 大 股 东 兼 赞 助 机 构 ESR集 团 ， 它 独 资 拥 有 的 胜 宝 外 部 管 理 公 司 ， 以 及 投 票 顾 问 公 司 Glass Lewis， 都 建 议 股 东 否 决 特 大 的 两 项 议 案 。 要 求 召 开 特 大 寻 求 股 东 批 准 这 两 项 的 是 第 三 大 股 东 Quarz亚 洲 资 本 （ Quarz Capital Asia） 。 如 今 议 案 通 过 ， 信 托 将 开 创 本 地 房 地 产 投 资 信 托 （ REIT） 的 先 例 ， 是 本 地 第 一 个 要 把 管 理 内 化 的 REIT。 接 下 来 至 少 12个 月 ， 信 托 和 受 托 机 构 还 有 许 多 工 作 要 做 。 信 托 必 须 确 保 银 行 继 续 支 持 提 供 贷 款 ， 同 时 设 立 内 部 管 理 公 司 、 组 织 管 理 团 队 以 及 取 得 股 东 和 管 制 批 准 等 。 按 赞 助 机 构 和 管 理 公 司 的 说 法 ， 以 上 任 何 一 个 环 节 出 问 题 都 可 能 带 来 大 问 题 ， 管 理 内 化 不 成 功 ， 受 托 机 构 可 能 把 信 托 清 盘 ， 这 是 充 满 不 确 定 性 和 有 风 险 的 。 胜 宝 的 不 少 股 东 选 择 相 信 Quarz的 看 法 ， 认 为 管 理 公 司 必 须 对 股 东 负 责 、 必 须 能 被 撤 换 ， 新 加 坡 是 个 金 融 中 心 ， 信 托 应 该 不 会 因 把 管 理 内 化 而 倒 闭 。 胜 宝 工 业 信 托 有 1万 1000名 股 东 。 信 托 星 期 一 暂 停 交 易 ， 上 星 期 五 （ 4日 ） 闭 市 报 0.405元 。 |
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sealTeam3
Member |
07-Aug-2023 12:43
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Historic WIN for all unitholders!! 🎉
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asianguy
Senior |
07-Aug-2023 12:36
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Finally D-day is here. EGM started 10am. More than 2 hours already. Curious about the outcome ?
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mrwise
Supreme |
07-Aug-2023 10:16
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Anyone has any update on the EGM? | ||||
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Joelton
Supreme |
07-Aug-2023 10:12
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Sabana saga: One key protagonist or another will soon end up embarrassed for being wrong
Many unitholders &ndash even those inclined to get rid of the existing manager &ndash may baulk at the risks of relying on the trustee to set up a new internal manager
THE extraordinary general meeting (EGM) today (Aug 7) to internalise the management function of Sabana Industrial Real Estate Investment Trust (Sabana Reit) may not immediately mark the conclusion of a story that has gripped investors in Singapore over the past two months.
If the resolutions pass, Sabana Reit would be cast into uncharted territory as its trustee takes on the task of setting up an internal manager from scratch. The trustee has said this could take 12 months or longer, and that it expects to hold two or more additional EGMs to seek unitholder directions on specific matters.
The fees, costs and expenses of engaging professional advisers to implement the internalisation will be reimbursed out of Sabana Reit&rsquo s assets.
Sabana Reit&rsquo s existing manager &ndash which is owned by Hong Kong-listed ESR Group &ndash has said internalising the management function is an uncertain and potentially expensive process that could destroy value for unitholders. On top of that, Sabana Reit may end up in breach of its loan covenants.
The manager has also raised the possibility of its staff abandoning their posts before the internalisation process is concluded.
Quarz Capital, the activist investor that requisitioned the EGM, has been promoting a much more optimistic narrative. Last week, it said it believes &ldquo the entire internalisation process could potentially be streamlined to approximately six months&rdquo .
Quarz has also rubbished concerns about Sabana Reit&rsquo s lenders demanding immediate repayment of their loans, and said that internalising the management function of Sabana Reit will ultimately improve returns for unitholders. More importantly, an internal manager would have no incentive to pursue acquisitions that are not value accretive to unitholders.
Given the sharply different positions staked out by the key protagonists in this unfolding saga, one of them is going to suffer the embarrassment of being proven wrong in a very public way if the resolutions are passed at the EGM today.
On the other hand, if the resolutions are not passed, the questions that have been raised by Quarz about the external-management model of Singapore-listed Reits will probably continue to echo in the market for some time. In particular, the question of what investors can do in practical terms to replace an external manager they no longer trust will remain unanswered.
Proxy advisers&rsquo views
This column has previously said that Sabana Reit would garner a certain cachet if it were to successfully internalise its management function. In a market where every other Reit is externally managed, an internally managed Sabana Reit would stand out for offering possibly closer alignment of interests with investors.
Yet, even unitholders of Sabana Reit who would like to be rid of the existing manager for attempting to push through a lopsided merger with ESR-Reit (now ESR-Logos Reit) in 2020 may baulk at the risks of relying on the trustee to set up a new internal manager.
Proxy adviser Institutional Shareholder Services (ISS) recommended last month that unitholders of Sabana Reit vote against the second resolution at today&rsquo s EGM &ndash that is, the resolution to direct the Reit&rsquo s trustee to create a new internal manager.
Besides noting the risks associated with setting up a new internal manager, ISS said Quarz has not explained how that internal manager would actually improve Sabana Reit&rsquo s performance and financial results. &ldquo The projections released by Quarz on the potential upside of the internalisation are generally based on the same strategy being implemented by (the existing manager),&rdquo ISS said in its report.
Yet, ISS recommended that unitholders of Sabana Reit vote for the first resolution at the EGM &ndash that is, the resolution to remove the existing manager. ISS justified its recommendation by pointing to the corporate governance issues Quarz had highlighted &ndash such as the overlapping mandates of Sabana Reit and ESR-Logos Reit, and the recent appointment of a director despite strong resistance from minority unitholders.
ISS also said Sabana Reit has fallen behind its peers in terms of performance and market valuation. It said that Sabana Reit&rsquo s revenue is up 11 per cent over the past five fiscal years, compared with a median increase of 85 per cent for its peers. Its net asset value (NAV) decreased by 1.5 per cent, versus a median increase of 25.5 per cent for its peers.
&ldquo This poor performance is reflected in the discount to NAV, which would probably be worse if (its units were) not affected by the activist campaign and strategic investor purchases,&rdquo ISS said.
Sabana Reit closed Friday (Aug 4) at S$0.405 &ndash a 23.6 per cent discount to its NAV as at Jun 30 of S$0.53 per share.
Glass Lewis, another proxy adviser, attributed Sabana Reit&rsquo s discount to NAV to its relatively small size, and pointed out that the Reit had actually delivered a higher total return than its peer average over the past one, two, three and five years (as at Jun 7).
It also said Sabana Reit&rsquo s manager had provided detailed responses to Quarz&rsquo s concerns and made a &ldquo compelling case&rdquo that its proposals would not lead to a superior outcome for unitholders.
Glass Lewis is recommending that unitholders vote against both resolutions at the EGM.
Surprise twist?
While a lot has been said about what Sabana Reit&rsquo s lenders may or may not do in the event unitholders pass the resolutions that Quarz has put forward, it might be more important to know what ESR Group plans to do.
In a letter dated Jun 25, ESR Group said the value of its 20.6 per cent stake in Sabana Reit &ldquo far outweighs&rdquo the value of its investment in Sabana Reit&rsquo s manager. &ldquo There is no reason for ESR to prioritise and protect the value of our stake in the Sabana manager, at the expense of, or to the detriment of, Sabana Reit.&rdquo
Responding to questions from the Securities Investors Association (Singapore), or Sias, on Aug 4, ESR Group said its interest in maintaining the external-management structure of Sabana Reit is simply because it believes the resolutions put forward by Quarz will lead to value destruction and a long period of uncertainty.
It also said Sabana Reit&rsquo s existing external manager has delivered strong performance for unitholders and should not be replaced.
However, Sabana Reit&rsquo s most recent annual report shows that it paid its sponsor group nearly S$7.3 million in fees in 2022. This was more than the S$6.9 million ESR Group would have received in distributions from Sabana Reit with respect to the 226.8 million units it owns.
If unitholders of Sabana Reit vote to remove the manager, ESR Group would then plainly have no reason to protect or prioritise the value of its manager. And, if it genuinely believes the manager has delivered strong performance, it would arguably then have a strong incentive to offer it to Sabana Reit as a ready-made internal management platform for a nominal price.
Quarz more or less suggested this when it responded on Aug 3 to questions from Sias. &ldquo If the current external manager is truly concerned about the interest of unitholders, it can recommend gifting (itself) to all unitholders once the external manager is removed,&rdquo it said.
Of course, this surprise twist in the Sabana Reit story would be possible only if its unitholders take the very risky step of voting for change today.
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GoldenPig
Veteran |
07-Aug-2023 09:01
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Just saw this in an email from drwealth.comSabana REIT: The Ongoing Clash Between Managers and ActivistsSabana REIT has been on a downward slide since 2013. Quarz Capital is now attempting to force the internalization of Sabana' s REIT management. But would this actually benefit Sabana' s investors? 🤔 https://click.convertkit-mail.com/8kued2mm08toh0qoxmwukhzxzz399/reh8hoh0vvpndku2/aHR0cHM6Ly93d3cuZHJ3ZWFsdGguY29tL3NhYmFuYS1yZWl0LXRoZS1vbmdvaW5nLWNsYXNoLWJldHdlZW4tbWFuYWdlcnMtYW5kLWFjdGl2aXN0cy8= |
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sangsang1
Senior |
07-Aug-2023 08:07
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luckyguy3 can' t stand sabana shareholders winning all the time and has decided to sign off.. will be voting yes to owning the manager, taking back alll the profit which are now paid to the sponsor and more dpu$$$ and higher share price$$$$ huat huat ah!! 
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luckyguy3
Master |
07-Aug-2023 01:00
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Well, I predict Sabana reit share price will drop below ESR-LOGOS after ESR is kicked out. Give it 3-6 mths time.  . Then we will all see how these cult fellowers react. Signing out. See you all again in 3-6 mths time |
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sangsang1
Senior |
07-Aug-2023 00:34
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 More and more support for shareholders and the resolutions https://sgbudgetbabe.com/what-is-going-on-with-sabana-reit/ super comprehensive blog on the 2 opposing force Her conclusion: IF I were a unitholder who has to vote tomorrow (and that&rsquo s a big IF), I would vote for the internalisation and support Quarz Capital. My three main reasons are:
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sangsang1
Senior |
06-Aug-2023 15:36
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It is just like when they laugh at us when we voted down the merger with ESR REIT. Turns out who has the much much higher share price and dividend and who is laughing now |
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