Both ESR-REIT and Sabana REIT are currently listed at discounts to their respective book values, according to data captured in the Singapore REITs table.
Two institutional investors have jointly penned a letter to the Monetary Authority of Singapore (MAS) and the Singapore Exchange (SGX), pleading for the regulators to intervene in the proposed merger between ESR-REIT and Sabana REIT.
The merger has been described as having severe conflict of interest issues that will tarnish Singapore’s reputation as a REIT market.
ESR-REIT and Sabana REIT announced earlier in July 2020 that they would merge to form the 5th largest industrial REIT in Singapore in terms of asset size.
The announcement was met with harsh criticisms from these investors, who have vowed to oppose the merger when a mandate for it is called at an impending extraordinary general meeting (EGM).
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