Sabana Shari'ah REIT

MAS and SGX should ponder why many good companies chose to discontinue their relationships with them .

During the EGM on 28 Apr 17, representative from Savills made the following statement : "As valuers we haven’t set the price. We interpret the market and we validate whether that price is within an acceptable market range. It is correct that we value at a specific value in time. Whether with related parties or not, valuers will always make enquiries to what the purchase price is, knowing that the purchase price is the best evidence we can have. It is stated practice."

In their opinion, if the property is transacted at $23m, there exists best evidence that the valuation of that property is also $23m. This begs the question of the necessity of having any independent valuation at all from licensed appraisers as the transacted price is the best supporting evidence of their valuation (in Savills opinion).

SISV, when confronted with evidence of their valuers ignoring the actual rental of the property they are doing the valuation and instead declared the market rental to be significantly higher, chose to keep quiet and they remain quiet till date.

It is a pity that Savills, Knight Frank and Colliers were not taken to task by SISV for their work done with Sabana REIT/Vibrant.

(28-08-2017, 07:50 PM)ACTIVIST SPEAKS Wrote: During the EGM on 28 Apr 17, representative from Savills made the following statement : "As valuers we haven’t set the price. We interpret the market and we validate whether that price is within an acceptable market range. It is correct that we value at a specific value in time. Whether with related parties or not, valuers will always make enquiries to what the purchase price is, knowing that the purchase price is the best evidence we can have. It is stated practice."

In their opinion, if the property is transacted at $23m, there exists best evidence that the valuation of that property is also $23m.  This begs the necessity of having any independent valuation at all from licensed appraisers as the transacted price is the best supporting evidence of their valuation (in Savills opinion).

SISV, when confronted with evidence of their valuers  ignoring the actual rental of the property they are doing the valuation and instead declared the market rental to be significantly higher, chose to keep quiet and they remain quiet till date.

It is a pity that Savills, Knight Frank and Colliers were not taken to task by SISV for their work done with Sabana REIT/Vibrant.

"It is a pity that Savills, Knight Frank and Colliers were not taken to task by SISV for their work done with Sabana REIT/Vibrant."

Are they under SISV's jurisdiction?
SISV doesn't seem to have any bite, what can they do exactly?

In order to practice as a licensed appraiser in Singapore, you must be a member of SISV. Not sure about whether they have any bite, from what I can see, they definitely do not bark....

^^ you have made a difference in the REIT space. I think that's a lot more than most investors can claim.

Great job

(28-08-2017, 10:31 PM)specuvestor Wrote: ^^ you have made a difference in the REIT space. I think that's a lot more than most investors can claim.

Great job

Indeed, in practice, you have made OPMIs bow in shame. Most OPMIs limit ourselves (efficiently) to swim according to the flow, you have attempted and made a difference to the flow itself.

https://www.valuebuddies.com/thread-255-...#pid139173

Following this thread from the time we started this and muddling through the process, one would realise valuebuddies contributors had provided very valuable information and "impossible to counter" evidence of negligence/sloppy work by both the appraisers and management, both in the form of admirable research and devil advocates. Again, it is a pity that such work/opinion from the people here has not been given the due recognition it so deserves on a wider scale.

(29-08-2017, 09:27 AM)ACTIVIST SPEAKS Wrote: Following this thread from the time we started this and muddling through the process, one would realise valuebuddies contributors had provided very valuable information and "impossible to counter" evidence of negligence/sloppy work by both the appraisers and management, both in the form of admirable research and devil advocates.  Again, it is a pity that such work/opinion from the people here has not been given the due recognition it so deserves on a wider scale.

hi Activist Speaks,

It is obvious most of the people here are not doing it for their corporate career and the forum itself is too smart for snake oil sellers (people pushing through their own agenda/business).

Forums naturally have a network effect moat going for them. If more people give quality contribution, then it is going to get stronger and attract even more quality to come. There is some sort of "tail wind" if it is done right. So along this reasoning, it would really be a pity if you do not continue to contribute/post here beyond Sabana saga.

Moderator

(28-08-2017, 09:26 PM)ACTIVIST SPEAKS Wrote: In order to practice as a licensed appraiser in Singapore, you must be a member of SISV.  Not sure about whether they have any bite, from what I can see, they definitely do not bark....

Yea, it looks like it's more of those group membership type of structure.
You scratch my back and I'll scratch yours.

After everything's out in the news, they have to come out to appear like they're doing something, doesn't look like any punitive actions will follow, unfortunately

Sabana is pretty late in notification of release date for financial result . Is something brewing ?....hmmmm 😞