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Warburg Pincus-backed ESR in talks to buy Singapore's Sabana REIT: sources

Reuters Published on Mon, Aug 07, 2017 / 8:23 AM GMT+8

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SINGAPORE (Aug 7): Warburg Pincus-backed e-Shang Redwood (ESR) is in advanced talks to buy struggling Sabana Shariah Compliant Industrial REIT, sources familiar with the process said, in a likely first consolidation step in Singapore's US$3.5 billion ($4.75 million) mid-cap industrial trusts sector.

ESR, an Asian logistics developer, has been conducting due diligence on Sabana REIT and is set to complete its talks in a few months, said the sources. They, however, said ESR has not yet agreed on terms of a deal.

ESR announced in March a 5% stake in Sabana REIT, which has assets of about $1 billion comprising warehouses, logistics and high-tech industrial properties.