SINGAPORE (Reuters) - Sabana Shariah Compliant Industrial REIT (SABA.SI) said on Saturday that it has ceased talks with Warburg Pincus-backed e-Shang Redwood (ESR) that were exploring options related to the Sabana REIT’s strategic review.
Sources familiar with the process told Reuters in August that Asian logistics developer e-Shang Redwood was in advanced talks to buy the Sabana real estate investment trust (REIT), as a first step in the consolidation of Singapore’s $3.5 billion mid-cap industrial trusts.
The board of directors of Sabana Real Estate Investment Management Pte. Ltd., the manager of the Sabana REIT, said in a statement on Saturday that those talks with ESR have ended.
“The Manager wishes to update that discussions between the Manager and the ESR-REIT Manager have ceased. However, the Manager remains open to considering proposals from prospective strategic partners which will further strengthen Sabana REIT,” Sabana said in a statement.
When contacted by Reuters, Warburg Pincus and ESR both declined to comment.
Both Sabana and a unit of ESR had confirmed in August that they were holding discussions in connection with Sabana’s strategic review, although they also said there was no assurance that any transaction will materialize from the talks.
Reporting by Masayuki Kitano and Anshuman Daga; Editing by Christian Schmollinger