Singapore's Sabana REIT calls off talks with Warburg Pincus-backed unit (updated)

Alpha Integrated Real Estate Investment Trust

25/11/2017 08:36

(Updates with Warburg Pincus and ESR declining comment) 
    SINGAPORE, Nov 25 (Reuters) - Sabana Shariah Compliant 
Industrial REIT  SABA.SI  said on Saturday that it has ceased 
talks with Warburg Pincus-backed e-Shang Redwood (ESR) that were 
exploring options related to the Sabana REIT's strategic review. 
    Sources familiar with the process told Reuters in August 
that Asian logistics developer e-Shang Redwood was in advanced 
talks to buy the Sabana real estate investment trust (REIT), as 
a first step in the consolidation of Singapore's $3.5 billion 
mid-cap industrial trusts.  urn:newsml:reuters.com:*:nL4N1KX1WY 
    The board of directors of Sabana Real Estate Investment 
Management Pte. Ltd., the manager of the Sabana REIT, said in a 
statement on Saturday that those talks with ESR have ended. 
    "The Manager wishes to update that discussions between the 
Manager and the ESR-REIT Manager have ceased. However, the 
Manager remains open to considering proposals from prospective 
strategic partners which will further strengthen Sabana REIT," 
Sabana said in a statement.  urn:newsml:reuters.com:*:nSNZ5VrmFb 
    When contacted by Reuters, Warburg Pincus and ESR both 
declined to comment. 
    Both Sabana and a unit of ESR had confirmed in August that 
they were holding discussions in connection with Sabana's 
strategic review, although they also said there was no assurance 
that any transaction will materialise from the talks. 
 
 (Reporting by Masayuki Kitano and Anshuman Daga; Editing by 
Christian Schmollinger) 
 ((masayuki.kitano@thomsonreuters.com; +65-6417-4682; Reuters 
Messaging: masayuki.kitano.thomsonreuters.com@reuters.net)) 
 
Keywords: SABANASHARIA M&A/ESR