WCT says has started talks with authorities on REIT plan

KUALA LUMPUR (Aug 31): WCT Holdings Bhd, a construction and property outfit linked to Pavilion Group's Tan Sri Desmond Lim, said it has started talks with the relevant authorities regarding its proposal to set up a real estate investment trust (REIT).

However, it said in a statement to Bursa Malaysia yesterday that it has yet to submit any application to Securities Commission Malaysia for its approval to establish the REIT.

"The company will make the necessary announcements upon determination and finalisation of the proposed establishment of the REIT," it added.

Lim has a 17.52% stake in WCT, according to the group's Bursa filing dated June 28.

The clarification was issued after a local English daily reported on Tuesday that the regulator has given the greenlight to WCT to establish the REIT.

In June, news reports wrote, citing WCT group managing director Datuk Lee Tuck Fook, that WCT was expecting to list the REIT by year-end, and that it would have an asset size of over RM1 billion.

At the time, Lee said WCT was expecting to raise up to RM400 million in net proceeds from the REIT, which would comprise Paradigm Mall in Petaling Jaya, AEON BBT Mall and the Premiere Hotel in Klang.

Shares in the Main Market-listed WCT ended 5 sen or 2.78% lower at RM1.75 yesterday, valuing it at RM2.49 billion. — theedgemarkets.com

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