ESR’s 20.6% stake in Sabana REIT is valued at around $99 million. This compares with around the $25 million ESR is reported to have paid for the manager.
ESR Group, the largest unitholder of Sabana Industrial REIT, and the owner of Sabana REIT’s manager has written an open letter to all the REIT’s unitholders. In it, ESR has clarified that the monetary value of its stake in the REIT is a lot more than that in the manager.
Moreover, a back of envelope calculation shows that ESR's distributions from its investment in Sabana REIT are significantly higher than the management fees it receives from owning the manager.
