Sabana Reit unitholder alerts unitholders on Quarz’s ‘inaccuracies’ in internalisation of manager

ESR Group refuted Quarz’s statement on saving fees to pay to the external manager.

The dispute between Quarz and ESR Group over Sabana Reit resumes, this time about Quarz’s statement on how unitholders can save more than $40m of fees needed to pay external managers over the next decade.

ESR Group said the investor’s statements were baseless as well as Quarz’s statement in the requisition that alleged there can be “[i]mmediate cost savings of $2.4m per year through internalisation of the REIT manager.”

“This is again an attempt to inflate the alleged costs savings after they have publicly clarified that their earlier statement of alleged cost savings of $7.25m per year was wrong,” read the statement.

According to ESR Group, the Sabana trustee and manager also confirmed that the timeframe and costs to effect the resolution if passed are uncertain. 

“The only certainty is that the unitholders will bear these costs,” it added.

ESR Group then informed unitholders that they have a choice such as making EGM to keep Sabana Manager or remove Sabana Manager without any replacement yet.

“Removing the Sabana Manager now will cause significant unitholder value destruction and appointing a replacement if a viable replacement can even be put up to Unitholders for approval, is estimated to take more than one year, with unitholders bearing the costs,” added ESR Group.