Quarz Capital Pushes for Sabina-ESR REIT Merger

November 14, 2019 | Investments, News, Real Estate

Quarz has been buying the Sabana REIT since 2018

Quarz Capital Management is pushing for a merger of two large Singapore-based real estate investment trusts (REITs). The activist fund is pushing for a merger of Sabana Shari’ah Compliant Industrial REIT and ESR-REIT.

Quarz worries that ESR Cayman’s cross-ownership of the two funds creates disadvantages if the REITs’ investment mandates overlap. A merger would resolve the issues, according to the firm.

Quarz Capital Management Letter to Sabina REIT

Meanwhile, Quarz sent a letter to Sabina REIT on Thursday.

“We are not convinced by ESR’s argument that they are able to clearly manage Sabana and ESR REITs independently,” the letter read. “As a recently listed company in Hong Kong, ESR has a fiduciary duty to enhance the value of its shareholders, which translates to ensuring that the value of its stakes in both ESR and Sabana REITs are maximized.”

Quarz proposes that the two REITs merge. It proposes an exchange of 0.92 units of ESR-REIT and S$0.067 in cash for one unit of Sabina REIT.

Finally, Quarz Capital Management has been busy this year pushing for Singapore REIT consolidation. In April, it pushed for a deal between Ascott Residence Trust and Ascendas Hospitality Trust. At the time, Quarz also raised concerns after CapitaLand took ownership of both REITs managers.

Further, the two companies announced a merger in July. The deal will likely close in December.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News

Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…