ESR in talks to acquire struggling Sabana REIT

The firm is being backed by Warburg Pincus.

DealStreet Asia reported that 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 $3.5b 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 percent stake in Sabana REIT, which has assets of about $1b (US$735 million) comprising warehouses, logistics and high-tech industrial properties.

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