ESR Cayman assures no conflict of interest in ESR-Sabana merger

There is no common sponsorship in the Sabana REIT manager, it said.

ESR Cayman has assured that there are no conflicts of interest stemming from its interests in Sabana REIT and ESR REIT, and that it has put safeguards in place.

This comes after the announcement of a proposed merger between the two REITs, as declared jointly by their respective managers.

The firm stressed that there was no common sponsorship as ESR Cayman’s stake in the Sabana REIT Manager is held through Blackwood Trust with an independent third-party trustee licenced in Singapore acting on its behalf.

ESR Cayman also did not appoint any nominee directors on the Sabana REIT Manager board. The boards and management teams of both REITs managers are separate, with no common director or overlap in management personnel, the firm added.

“Given the independence of both REIT managers and Blackwood Trust structure, ESR Cayman does not receive, and has not received any information regarding the day-to-day operations or acquisitions and divestment of assets relating to Sabana REIT.”

ESR Cayman also highlighted that since its ownership of the Sabana REIT Manager, the latter has not consulted the Blackwood Trustee on any matters in relation to the REIT. In the event that it would be required, the Blackwood Trustee has full discretion to make any decisions in relation to the REIT or the manager without consulting ESR Cayman.