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The transaction is valued at $20.5 million and comes with an adjustment sum of about $1.3 million.
Pan-Asia logistics real estate platform ESR Cayman is acquiring a majority stake in Sabana Investment Partners (SIP), an investment holding company which owns Sabana Property Management and Sabana Real Estate Investment Management, reported Deal Street Asia.
Sabana Property Management is Sabana REIT’s property manager, while Sabana Real Estate Investment Management is Sabana Shari’ah Compliant Industrial Real Estate Investment Trust’s (Sabana REIT) manager.
ESR revealed that its indirect fully-owned subsidiary InfinitySub Pte Ltd has inked a sale and purchase agreement with Vibrant Group, which is selling its 51 percent stake in SIP.
The Straits Times reported that the transaction is valued at $20.5 million and comes with an adjustment sum of about $1.3 million.
After the transaction, ESR will indirectly own about 93.8 percent interest in SIP and about 21.4 percent of Sabana REIT’s total issued units.
ESR co-founders and co-CEOs Stuart Gibson and Jeffrey Shen said the acquisition further establishes the company’s presence in Singapore.
“The investment in Sabana Reit and its manager is in line with ESR’s long-term strategy of investing in a broad range of real estate investment vehicles that would provide us with access to a portfolio of industrial properties in various stages of the property life cycle,” explained Gibson and Shen.
Listed on the mainboard of the Singapore Exchange, Sabana REIT has a diversified property portfolio that is valued at $880 million as at 31 March 2019.
The portfolio consists of 19 properties spread across the city-state. The real estate investment trust, which is said to be one of the biggest Shari’ah compliant REITs in the world in terms of total asset size, mainly invests in income-producing real estate that are used for industrial purposes as well as real estate-related assets.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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