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SAVE SABANA REIT (SGX: M1GU)

 

Urgent action is needed to save Sabana REIT unitholders' interests 

 

Quarz Capital and Black Crane Capital want to make sure all Sabana REIT unitholders can realize a fair value for their units! Shareholders are in no need to accept "Low-Ball" offers and they should hold Management & Board accountable for their actions.

This website and the information contained herein (collectively referred to as "the Website") are being made available to all unitholders of Sabana REIT. Quarz Capital  together with Black Crane Capital ("Quarz", "Black Crane") are the investment managers of private funds (the “Quarz Funds”, "Black Crane Funds") that own units in Sabana REIT. Quarz/Black Crane have created this Website to enable visitors to carefully monitor how the board and management of Sabana REIT address our Proposals, listen to unitholders’ views and endeavours to increase the value of the Sabana REIT units in the best interest of all unitholders (please read our disclaimer and data privacy rules carefully).

ENDORSEMENT OF INDEPENDENT DIRECTORS?

"Independent unitholders applaud MAS for enabling the endorsement of the new independent directors to safeguard and align the interest of Sabana REIT manager with independent unitholders (who hold more than 75% of the units of Sabana REIT (SSREIT SP Equity). The protection of independent unitholders’ interests further increases the confidence of global investors in the Singapore REIT market and enhances the reputation of Singapore as a pre-eminent financial center in Asia. "

INDEPENDENT DIRECTORS RESIGNING?

"Its certainly not "usual" that two new independent directors resign within 3 months of their appointments! In our opinion it clearly demonstrates the lack of engagement and potential misalignment of interest between Sabana REIT Manager and Sabana independent unitholders. It also again reflects quite poorly on Sabana REIT Manager, and the sponsor ESR Cayman!"

REIT MANAGERS AND THEIR DIRECTORS SHOULD ACT IN THE BEST INTERESTS OF UNITHODLERS 

"As clearly stated in the Securities and Future Act, REIT managers and their directors have a legal obligation to act in the best interests of unitholders, and prioritise unitholders’ interests over those of the REIT manager and its shareholders!"

 

We reiterate our demands which should be aligned with and represent the interest and intentions of all unitholders: 

  1. Return of fees (S$2.7million) for the ‘failed merger’ as it is fully the responsibility of Sabana REIT Manager 

  2. Sabana REIT Manager to commit to clear targets and deliverables to improve Sabana REIT and close the substantial valuation gap including exploring options beyond business as usual 

  3. Appointment of independent board members who are committed to prioritize unitholders’ interests over those of the REIT manager and its shareholders. 

RESIGNATIONS SHOULD BE EFFECTIVE IMMEDIATELY

"WE ALSO CALL ON THE RESIGNATION OF THE NEW DIRECTORS TO BE EFFECTIVE IMMEDIATELY (INSTEAD OF 26th APRIL 2021).

 

This is so that Sabana REIT Manager can immediately nominate new directors to be endorsed by independent unitholders in the AGM in 2021.

 

What would be the intention to wait and to make the resignation effective only on 26th April 2021 despite the clear intentions of the 2 directors to not commit to their directorship roles?

Could this be simply tactic by Sabana REIT Manager to potentially bypass the endorsement requirements in the April 2021 AGM and therefore potentially ‘outmaneuver’ MAS regulation which has been put in place to safeguard unitholders’ interests to only benefit Sabana REIT Manager and its shareholders? 

 

If this was the case, wouldn't Sabana REIT Manager potentially be in outright breach of both the Securities and Futures act to prioritize unitholders’ interests and the MAS implemented safeguard to protect unitholders?"

LET'S FIND A SOLUTION AND WORK TOGETHER

"As stated in our previous letter and communications with the REIT Manager, we are still open to further discussion and engagement with Sabana REIT Manager and have already separately proposed suitable director candidates to the REIT Manager whom we believe are fully committed to protect unitholders’ interest and increase the unitholder value of Sabana REIT.

We believe that directors who can explore the full range of options for Sabana REIT to close the substantial valuation gap are required and not just directors who are suited to the continuation of ‘business as usual’. 

We want to make Sabana REIT Manager aware, that ‘simply’ nominating another 2 directors without independent unitholders endorsement and support to serve until the next AGM is unacceptable to us.

 

We would consider this to be a potential ‘circumvention’ and ‘exploitation of loopholes’ of the safeguarding measures and regulation put in place by MAS to protect independent unitholders."

ENGAGE AND LISTEN

"WE AGAIN URGE SABANA REIT MANAGER TO ‘ENGAGE AND LISTEN’ TO INDEPENDENT UNITHOLDERS IN THEIR SEARCH FOR SUITABLE DIRECTOR CANDIDATES NOW.

 

Independent unitholders collectively own more than 75% of Sabana REIT and want only the best for the REIT.

 

It is puzzling to us how the REIT Management and directors continue to act against its own independent unitholders. 

We also call on ESR Cayman as the sponsor of Sabana REIT Manager to finally stop ‘hiding’ under the pretext of independence and commit to be fully aligned with and support independent unitholders. The full alignment of interest will only serve to benefit all Sabana REIT unitholders."

CONTACT US / SUBSCRIBE TO UPDATES

WE INVITE ALL SABANA REIT UNITHOLDERS TO VISIT AND REGISTER AT THE WEBSITE WE HAVE PREPARED FOR INFORMATIONAL PURPOSES AT WWW.SAVESABANAREIT.COM 

Data Privacy/Collection Disclaimer

By clicking "Submit"below, YOU consent to the collection, use and disclosure of YOUR personal (i.e. email, name, unitholdings) data for the purposes of: 


(a) receiving calls, emails, updates and information and communication regarding matters relating to Sabana REIT; 


(b) organizing and contacting unitholders of Sabana REIT with regard to matters of Sabana REIT."

Please contact info@savesabanareit.com for any enquiries regarding data protection and to reach our data protection officer.

 

 

©2021 by Quarz Capital Management, Ltd. & Black Crane Capital

DISCLAIMER

 

This website and the information contained herein (collectively referred to as "the Website") are being made available to all unitholders of Sabana Reit (M1GU/SABA.SI). 

Quarz Capital Management Ltd. ("Quarz") and Black Crane Capital ("Black Crane") are the investment managers of private funds (the “Quarz Funds”/ "Black Crane Funds" respectively) that own units in Sabana Reit. Quarz/Black Crane have created this Website to enable visitors to carefully monitor how sincerely the board and management of Sabana REIT address unitholders’ proposals, listen to unitholders’ views and endeavour to increase the value of the Sabana REIT units in the best interest of all unitholders.

The Website was created solely for the purpose mentioned above. Quarz/Black Crane are not and should not be regarded or deemed in any way whatsoever to be (i) soliciting or requesting other unitholders of Sabana REIT to exercise their unitholders’ rights (including, but not limited to, voting rights) jointly or together with Quarz/Black Crane, (ii) making an offer, a solicitation of an offer, or any advice, invitation or inducement to enter into or conclude any transaction or (iii) any advice, invitation or inducement to take or refrain from taking any other course of action (whether on the terms shown therein or otherwise).

The Website exclusively represents the assumptions, opinions, interpretations and estimates of Quarz/Black Crane in relation to Sabana REIT's business and governance structure. Quarz/Black Crane are expressing such opinions, etc. solely in their respective capacity as an investment adviser of the Quarz Funds/ Black Crane Funds.

The information contained herein is derived from publicly available information deemed by Quarz/Black Crane to be reliable.

The information herein may contain forward-looking statements which can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “seeks,” “could” or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe Quarz’s/Black Crane's objectives, plans or goals are forward-looking. Any forward-looking statements are based on Quarz’s/Black Crane's current intent, belief, expectations, assumptions, estimates and projections. These statements are not guarantees, predictions or forecasts of future performance and involve risks, uncertainties, assumptions and other factors that are difficult to predict and that could cause actual results to differ materially. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

While Quarz/Black Crane believe that reasonable efforts have been made to ensure the accuracy of the information contained in the Website, Quarz/Black Crane make no representation or warranty, expressed or implied, as to the accuracy, completeness or reliability of such information. Quarz/Black Crane expressly disclaim any responsibility or liability for any loss howsoever arising from any use of or reliance on any of the information contained in the Website or any of their contents as a whole or in part by any person, or otherwise howsoever arising in connection with the same.

 

Quarz/Black Crane are not under any obligation to provide any updated or additional information or to correct any inaccuracies in the information contained herein.