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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 intend to reject proposed merger of Sabana and ESR REITs at current terms

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).

Investor EGM "Chat" ZOOM WEBINAR FOR SABANA UNITHOLDERS

Date and Time: Wednesday 25. November 2020, 8:15PM

Upcoming Events

Wed, Nov 25
Zoom Webinar Wednesday 25.11.2020, 8:15PM
Sabana Independent Unitholder Webinar on the Proposed Merger EGM, Wednesday 25.11.2020, 8:15PM
Quarz & Black Crane will discuss their rationale behind VOTING AGAINST the Proposed Merger and on our Plan B on Wednesday 25.11.2020, 8:15PM. FIND ZOOM DETAIL HERE: https://www.savesabanareit.com/so/f0NNx5bPK?cid=e52dbf83-dc77-4c7c-b8ca-7ce6c1767180#/main
  • The Manager of Sabana REIT has in our opinion increasingly lost value for Unitholders through its decisions

  • We believe the proposed merger between ESR REIT and Sabana REIT potentially destroys tremendous value for Sabana REIT Unitholders

  • Quarz Capital and Black Crane Capital are therefore opposing the proposed deal at the current terms

  • We urge all Unitholders to carefully review the merger terms, our independent analysis and do their own research on the proposals

  • We stand ready to VOTE AGAINST the proposed deal and we are asking for an improved offer from ESR-REIT

A MERGER BELOW NAV IS HIGHLY UNUSUAL

"In the 18-year history of the Singapore REIT market with more than 8 takeovers, there has never been a single takeover of a REIT at such a substantial discount to book value!"

UNPRECEDENTED TAKEOVER DISCOUNT -VS- NORMAL PREMIA

  • ESR Cayman paid S$ 0.48 cents in CASH for 1 Sabana REIT Unit exactly 1 year ago

  • Now they offer unit holders S$ 0.376 cents with NO CASH, in ESR-REIT units at a steep discount to Sabana NAV

  • Sabana NAV was swiftly reduced from 0.57 to 0.51 (-~10%) in 6months by the REIT Manager?

  • No mention of the before lauded new retail component?

  • Premature assumption of the termination of master lease in valuation?

  • Multiple levers to reach book value are identifiable and thus Sabana REIT should be taken over at Book Value.

UNITHOLDERS' INVESTMENTS IN SABANA REIT ARE POTENTIALLY WORTH LESS DUE TO ITS POOR MANAGEMENT

"The Manager of Sabana REIT, Sabana Real Estate Investment Management Pte. Ltd (the "Manager"), which is more than 60% owned by ESR Cayman has in our view not timely executed on unitholders' proposals to increase unitholder value. This must be resolved!"

POTENTIAL CONFLICT OF INTEREST ARISING FROM OWNERSHIP STRUCTURE?

  • Obvious and well documented potential conflicts of interest exist?

  • One owner controlling 2 REIT Managers in Singapore with the same mandate.

  • A transparent and open bidding for Sabana or Sabana's Assets at equal or higher than book value should be obvious for any potentially unconflicted REIT Manager with fiduciary duties to unitholders?

  • What is the recommendation of independent directors of Sabana REIT?

  • On what basis do ID's recommend Sabana REIT unitholders to sell below Book Value?

WHAT HAS GONE WRONG WITH SABANA REIT?

"The potentially conflicted REIT Manager has chosen to recommend a suboptimal offer instead of executing and focusing on readily available levers to increase DPU. Conveniently the merger will erase/cover the underperformance instead of uncovering and addressing/solving key issues at Sabana!"

LOW OCCUPANCY RATE OF SABANA REIT -VS- OTHER SINGAPORE REITS

  • Occupancy Rate of the portfolio managed by Sabana REIT Manager is substantially lower than listed peers and the industry

  • There is substantial potential for increased occupancy rate and rental income

  • Manager has not undertaken any strategic transactions since early 2019 despite one of the lowest gearing ratio among SGX listed REITs

  • Unitholders have rejected the poor performance of the REIT manager in the past

  • It appears that occupancy rate has dramatically declined since ESR became the controlling shareholder of the REIT manager

  • Manager has conveniently blamed it on the expiry of the master leases

  • however peers with similar master lease expires have successfully renewed and found new leasees resulting in continuing high occupancy rate

  • Offer well below NAV as a result of underperformance?

  • Will Sabana REIT unitholders enable a merger well below NAV?

CONTACT US / SUBSCRIBE TO UPDATES

WE ARE BUILDING A COMMUNITY OF UNITHOLDERS TO EXCHANGE THOUGHTS AND TO COLLECTIVELY EVALUATE THE OFFER AND ALTERNATIVE SOLUTIONS TO CREATE UNITHOLDER VALUE

PLEASE SUBSCRIBE AND GET IN TOUCH

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.

 

 

©2020 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.