SunREIT’s yield may touch 7.5%
Sunway REIT Management Sdn Bhd (SunREIT) has told institutional investors that its dividend yield range will be between 6.8% and 7.5%. A source tells The Edge that the REIT manager has provided institutional investors with a yield it is confident of achieving based on the track record and forecast net profit of the properties injected into the real estate investment trust (REIT).
Speaking at the prospectus launch on June 15, SunREIT CEO Datuk Jeffrey Ng said SunREIT’s listing could stir strong foreign interest. Upon listing, SunREIT will be the largest IPO thus far this year, with about RM1.65 billion expected to be raised from the flotation exercise. It will also be the largest REIT listed on Bursa Malaysia.
KSL acquires land in Jalan Madge
KSL Holdings Bhd is acquiring a land parcel, for RM25.4 million. In a June 14 filing, the construction firm said its unit Goodpark Development Sdn Bhd had entered into a sale and purchase agreement with The Secretary of State for Foreign and Commonwealth Affairs of the United Kingdom of Great Britain and Northern Ireland (SSFCA) for the acquisition. The 0.84-acre plot, currently the site of the UK High Commissioner’s residence, is located at 18, Jalan Madge, Kuala Lumpur.
KSL Holdings says the acquisition is primarily to increase its land bank at strategic locations for future property development.
CapitaMalls Asia gets nod to list CapitaMalls Malaysia Trust
CapitaMalls Asia Ltd has received the Securities Commission Malaysia’s approval to list its Malaysian assets in the form of a REIT. Approval was given to list 1.35 billion units of CapitaMalls Malaysia Trust (CMMT). A total of 786,522,000 units will be offered to institutional and other investors both in Malaysia and overseas, as well as to the general public in Malaysia only.
CMMT’s initial portfolio comprises the shopping malls Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur, and The Mines in Selangor. The portfolio has a total net lettable area of 1.88 million sq ft. AmTrustee Bhd, the trustee for CMMT, has valued the portfolio at RM2.13 billion.
HK tycoon eyeing 1 Mont’ Kiara
A real estate fund management company affiliated with Hong Kong’s Cheung Kong Group — which is controlled by the world’s 14th richest man, property tycoon Li Ka-shing — is bidding for the second phase of the 1 Mont’ Kiara (1MK) development for RM300 million, sources say.
It is understood that the company is offering to purchase the entire second phase, which comprises both retail and office space. The first phase of development, consisting entirely of office space, has been sold out.
The development is 50:50 owned by Singapore-based CapitaLand and London-listed Aseana Properties Ltd, is being carried out by Ireka Development Management Sdn Bhd, a wholly-owned subsidiary of Ireka Corp Bhd. Ireka, which holds a 20% stake in Aseana Properties, confirmed that a bid had been received but declined to provide details.
According to an analyst, the total net lettable area of 1MK comes up to 831,272 sq ft, with about 250,000 sq ft of retail space. The total gross development value of 1MK is said to be US$150 million (RM496.5 million).
This article appeared in City & Country, the property pullout of The Edge Malaysia, Issue 811, June 21-27, 2010