News about WCT

The downward revision in forecasts is mainly driven by the potential review of the Subang Airport Regeneration Plan (SARP), following the takeover of Malaysia Airports Holdings Bhd (MAHB) by the Gateway Development Alliance consortium.

As part of the proposed listing of Paradigm REIT, shareholders also approved the proposed disposal of three prime retail properties — Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ) and Paradigm Mall Johor Bahru (PMJB) — to Paradigm REIT for RM2.

The rating agency noted that with around 380,000 sq ft of net lettable area, the mall’s occupancy rate has reached 96.

The initial property portfolio includes the Bukit Tinggi Shopping Centre, which will be acquired from Gemilang Waras Sdn Bhd, a wholly-owned unit of WCT, for RM680 million, with RM350 million settled in units and RM330 million in cash.

Its property development segment also saw an increase in operating profit to RM37 million from RM25 million a year ago, as revenue rose to RM384 million from RM240 million.

Shares of WCT have more than doubled so far this year, tracking strong gains in the construction sector, and partly boosted by news of the planned REIT listing in recent months.

This is going to be the second REIT to be controlled by billionaire tycoon Tan Sri Desmond Lim Siew Choon, after Pavilion REIT.

Still, WCT has had a great rally so far in 2024, as its stock price more than doubled at the end of last year, tracking a rally in the construction sector, largely fuelled by optimism about the government’s rollout of major infrastructure projects and contract awards in the private sector KUALA LUMPUR (Aug 5): Shares of construction and property group WCT Holdings Bhd (KL:WCT) plunged to their lowest in one month, after the stock exchange suspended intraday short-selling activities of the stock on Monday morning.

Last month, WCT announced plans to establish and list a real estate investment trust on the Main Market of Bursa Malaysia which will allow the group to monetise its investment properties.

WCTB bagged a similar project worth RM127.