Sunway City hires bankers for REIT IPO

KUALA LUMPUR: Property developer Sunway City Bhd has hired RHB Investment Bank and Credit Suisse as the main coordinators for the planned listing of its real estate investment trust (REIT) in Malaysia, sources with knowledge of the deal said on Wednesday Jan 27.

The listing of the REIT, the biggest ever in the Southeast Asian country, is likely to happen in the first half of 2010 and the company may raise about RM1 billion in its public offering, one of the sources told Reuters.

"The REIT will have a market capitalisation of more than RM3 billion," said one source.

Credit Suisse will act as the international global coordinator, while RHB will handle all domestic issues.

Sunway City was not immediately available for comment, while RHB and Credit Suisse declined to comment.

Sunway City, valued at US$440 million (RM1.51 billion), told Reuters last year that it may revive the plan to float its property assets in 2010 depending on the recovery in markets.

Sunway City said earlier this month the REIT will group at least four properties in the capital Kuala Lumpur and one in northern Penang state.

Shares of the property developer ended up 0.6% at RM3.20, outperforming the broader market. - Reuters

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