Hong Kong-based, ESR, a logistics real estate platform with a network spanning across China, Japan, South Korea, Singapore, Australia and India, through its indirect wholly-owned subsidiary, InfinitySub Pte. Ltd., has entered into a sale and purchase agreement with Vibrant Group Limited to purchase 51.0% of the entire issued and paid-up capital of Sabana Investment Partners Pte. Ltd. (“SIP”), an investment holding company that owns 100% equity interest in Sabana Real Estate Investment Management Pte Ltd (the manager of Sabana REIT) and Sabana Property Management Pte Ltd (the property manager of Sabana REIT). Concurrently, ESR, through its indirect wholly-owned subsidiary, e-Shang Infinity Cayman Limited, also entered into separate SPAs to purchase approximately 9.9% of the total issued units in Sabana REIT.
Following the transaction, ESR will indirectly hold approximately 93.8% equity interest in SIP and approximately 21.4% of the total issued units in Sabana REIT. Listed on the Mainboard of the Singapore Exchange Securities Trading Limited since 26 November 2010, Sabana REIT has a diversified property portfolio valued at S$880.2 million as at 31 March 2019, comprising 18 properties strategically located across Singapore.
Sabana REIT primarily invests in income-producing real estate used for industrial purposes and real estate-related assets. Its portfolio comprises quality industrial buildings in four main industrial property segments: high-tech industrial park, warehouse and logistics, chemical warehouse and logistics as well as general industrial. As at 31 December 2018, Sabana REIT continues to be one of the world’s largest listed Shariáh compliant REITs in terms of total asset size.
Jeffrey Shen and Stuart Gibson, co-founders and co-CEOs of ESR, said, “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. The transaction would allow us to enhance our income diversification and provide further opportunities for growth in the future. With this acquisition, we have further established our presence in Singapore and ESR is poised to leverage our Singapore platform as a gateway for expansion into ASEAN, thus expanding our Asia Pacific footprint linking North Asia, India and Singapore to Australia.”