Sunway City gets go-ahead for 2.78 billion-unit fund size REIT

KUALA LUMPUR: Sunway City Bhd (SunCity) has received approvals from the Securities Commission for the establishment of Sunway Real Estate Investment Trust (Sunway REIT), with a fund size of 2.78 billion units and for an initial listing of 2.68 billion units on the Main Board of Bursa Malaysia.

According to a filing to Bursa on Friday May 7, SunCity said the approvals also include the appointment of Sunway REIT Management Sdn Bhd (Sunway REIT Management) as the REIT management company and OSK Trustees Bhd as its trustee.

Approval was also given to Sunway REIT Management to be exempted from complying with the minimum Bumiputera requirement according to guidelines on REITs.

Sunway REIT is also exempted from disclosing in its prospectus the details of the direct and indirect interests of certain directors and substantial shareholders of Sunway REIT Management in other corporations in similar businesses with Sunway REIT Management. as required in the prospectus guidelines for collective investment schemes.

In a separate filing to Bursa on the same day, SunCity disposed SCB Land to Sunway Pyramid Sdn Bhd (SPSB) for RM41.77 million, which ultimately facilitates the forming of Sunway REIT through SPSB’s proposed disposal of Sunway Pyramid Shopping Mall to Sunway REIT.

The disposal of SCB Land includes three parcels of leasehold land within Sunway in Petaling Jaya – Lots 31, 51175 and PT1312 with a total land area of 208,884 sq ft, excluding Sunway Pyramid Shopping Mall which sits on the lands. The mall is owned by SPSB.

The 4-storey mall in Bandar Sunway with 4.29 million sq ft of gross floor area and 1.69 million sq ft of net lettable area recorded an average occupancy rate of 98.9% for the six months ended Dec 31, 2009. The average monthly gross rental income was RM15 million.

The market value for SCB Land, appraised by City Valuers & Consultants Sdn Bhd, was RM41.8 million.