TA Enterprise plans to set up REIT

KUALA LUMPUR (July 6): TA Enterprise Bhd plans to set up a real estate and investment trust (REIT) to unlock the value of its properties under management.

“If we were to put all the major assets into a REIT, we can unlock the value and raise money to repay bank loans, while funding projects in the pipeline,” its CEO Datin Tan Kuay Fong told reporters after the company AGM yesterday.

However, she declined to reveal details as to when the company plans to launch the REIT. “We will let you know when we are ready. Currently, we are still exploring the opportunities,” she said.

Meanwhile, TA Enterprise received shareholders’ approval for its subsidiary TA Global Bhd to jointly develop a hotel and residential building in West Georgia Street in Vancouver, Canada, with a Canadian company, Birkbeck Trust, on a 50:50 basis. The building has a projected gross development value of RM1.54 billion and is expected to generate a profit of RM423.46 million with both companies receiving equal share.

On the domestic front, TA Enterprise is expected to launch the Peninsular Puchong residential project in the final quarter of this year or the first quarter of 2013. The launch date will also depend on market demand as the local property outlook is not so vibrant at present.

This article appeared in The Edge Financial Daily July 7, 2012.

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