ESR Group says Quarz made sudden U-turn on intention of internalising Sabana

The firm said Quarz had no plans regarding the management of Sabana Industrial Reit.

Property firm, ESR Group, said investor Quarz made “U-turns” from seeking internationalisation, the resolution that the latter was pushing for Sabana Industrial Reit.

In a statement, ESR Group, unitholder of Sabana, alleged that the U-turns taken by Quarz include, but are not limited to:

• Changing the intention of the Requisition and stating that it is always aimed at removing “the current ESR-owned External Manager” (and not internalisation). Previously Quarz clearly

stated that the purpose of the resolutions is to make sure internalisation happens.

• That Quarz is “not proposing any amendments to the Trust Deed”. This plainly contradicts Quarz’s earlier position and statements.

• That Quarz’s true intention is now to be involved in the management function of Sabana REIT themselves.

ESR Group also said Quarz provided no plans in the management of Sabana if the resolutions in their requisition gets passed.

“Its one and only proposed course of action is to redirect the responsibility of managing the negative consequences of their resolutions solely to HSBC Trustee, without consulting with HSBC Trustee on their willingness or their ability to take up such a role,” it said.

With this development, ESR called Quarz’s acts as “highly reckless and irresponsible” whilst encouraging unitholders “to take a leap of faith with no concrete plan on the future of Sabana Reit.”