Sabana Industrial REIT

Sabana Industrial REIT (“Sabana”) owns a ~S$950 million portfolio of industrial properties in Singapore with conservative valuations and low leverage of 33%. Despite the majority of the portfolio sited in attractive locations as well as the strong structural growth of manufacturing in Singapore driving rental demand, the occupancy rate of the portfolio has consistently remained far below industry average. The REIT also has untapped gross floor area of more than 1 million sqft (25% of the portfolio) which remain undeveloped.  

In addition, Sabana also suffers from the critical issue of overlapping investment mandate as the owner of its REIT manager, ESR Group, also owns the manager of ESR-Logos REIT which mainly invest in industrial properties in Singapore. Due to the above, Sabana REIT has consistently traded at a discount of ~25% to its NAV.

Engagement topics: 

  • Increase rental income and unit price by: 
  • Increase in occupancy rate  
  • Expedite on development plans to increase gross floor area in portfolio 
  • Undertake asset enhancement plans to increase attractiveness of portfolio assets 
  • Resolve the overlapping investment mandate between Sabana and ESR-Logos REIT 


  • Ongoing Case