Sabana Reit *Official* (SGX: M1GU)

[lzydata]

https://www.businesstimes.com.sg/co...abana-reits-manager-passes-through-575-favour

Will ESR find a way to exit this REIT now?

 

[SpeedingBullet]

Well done guys. First such case in Singapore for SREITs, what a rare win.

now the hard work begins

 

[starbugs]

Quite a significant moment. If Sabana can make this work, we can start to think about kicking out CL and MPT liao.

 

[lzydata]

Well done guys. First such case in Singapore for SREITs, what a rare win.

now the hard work begins

Actually it is the second, after Croesus Retail Trust

I remember it was not long after that Blackstone made an attractive offer to privatise the trust, so we did not get to find out how an internalised manager performs.

 

[light84]

Quite a significant moment. If Sabana can make this work, we can start to think about kicking out CL and MPT liao.

I think CL and MPT reits are generally quite well run.

ESR sponsored reits are a far cry from it

 

[steadywin]

very exciting egm from the article!
shareholder power!

https://www.businesstimes.com.sg/co...lders-approve-removal-manager-575-vote-favour

 

[steadywin]

alot of speculations that esr has to maybe come back with something better now before they lose control

 

[lzydata]

Well done guys. First such case in Singapore for SREITs, what a rare win.

now the hard work begins

Actually it is the second, after Croesus Retail Trust

I remember it was not long after that Blackstone made an attractive offer to privatise the trust, so we did not get to find out how an internalised manager performs.

Okay, I see Business Times is also considering this the first time for a REIT's management to be internalised. Croesus was indeed a business trust, as is Netlink NBN Trust. I stand corrected.

 

[lzydata]

alot of speculations that esr has to maybe come back with something better now before they lose control

So I think the first step would be to agree on a price for the REIT to buy over the manager from ESR, and to get shareholder approval for that. And will people like the price or not.

This should be the smoothest way, or else they have to start one up from scratch, hire the people, get the licence etc.

 

[light84]

So I think the first step would be to agree on a price for the REIT to buy over the manager from ESR, and to get shareholder approval for that. And will people like the price or not.

This should be the smoothest way, or else they have to start one up from scratch, hire the people, get the licence etc.

I think that’s the easiest way as well.

ESR sell the reit manager for $$. Otherwise they got nothing to gain from this since the current manager no longer has the mandate.

Unitholders gets the continuity in retaining the existing manager instead of assembling one from scratch and this save $$ as well

 

[chowck]

If all staff retained (manager plus his team), then no need to wait for 1 over year to get it running?

 

[steadywin]

quite likely team will stay on. They will do same job, just different and probably better owners (shareholders)

quite a smart strategy, in the end shareholders have properties and also manager now

 

[steadywin]

I think that’s the easiest way as well.

ESR sell the reit manager for $$. Otherwise they got nothing to gain from this since the current manager no longer has the mandate.

Unitholders gets the continuity in retaining the existing manager instead of assembling one from scratch and this save $$ as well

think so too. sell manager or possible full take out?

 

[luckyplate]

If all staff retained (manager plus his team), then no need to wait for 1 over year to get it running?

we just need to retain the core team which is very small ... i dont see alot of issue if shareholders is given the chance to vote to retain .. i will vote to retain the team ...or at least keep donald in the team

 

[luckyplate]

think so too. sell manager or possible full take out?

i think esr will try not to rock the boat now ... if the shareholders want it internal .. Then let it be .. No harm to esr .. we just want a fair deal ...in the end of the day ..

 

[V_for_Vanilla]

we just need to retain the core team which is very small ... i dont see alot of issue if shareholders is given the chance to vote to retain .. i will vote to retain the team ...or at least keep donald in the team

No one is indispensable. They can leave if they want to. Not like they are doing an outstanding job too.

 

[yiron]

External manager makes sense when there’s a good sponsor whose interests are aligned with that of minority unit holders. That’s clearly not the case with ESR.

Glad that we managed to push this through. For better or for worse, at least now we have greater control and can steer the REIT in the direction that’s most beneficial for unit holders.

Even though main stream narrative may be against the internalisation, let’s stay hopeful. It’s the first step of a long journey, and we are just getting started

 

[light84]

very exciting egm from the article!
shareholder power!

https://www.businesstimes.com.sg/co...lders-approve-removal-manager-575-vote-favour

I think this EGM wasn’t so much about voting for external or internal manager. It was about the loss of trust towards ESR as a sponsor when they lowball unit holders to merge with ESR reit and the appointment of a director against unitholders displeasure.

Internal or external, as long as reit is growing and DPU increasing, who cares internal or external ..

If ESR is a person, the unitholders would have show them the finger between the second and the fourth

 

[luckyplate]

No one is indispensable. They can leave if they want to. Not like they are doing an outstanding job too.

Nah ... capable people are hard to find .you look at pap case you know what I meant

 

[steadywin]

well, wouldn't say Sabana management has top class people. without shareholders stopping them from their worst inclinations, share price would have been lower.

In fact maybe its a chance to hire the Croesus people. Can grow dividend faster and sell Sabana at big premium to book value