Riding on real estate investment trusts

NSTPress: REAL Estate Investment Trust (REIT) is the best ally when it comes to a balance of risk-return for long-term value investing.

The fact is, predictability is what REIT stocks offer.

While the dividend per share (DPS) of many dividend-paying companies (including blue chips) were affected post-2008 recession, the DPS of many Malaysian REITs (M-REITS) remained unscathed, which speaks volumes about the competency of the managers and defensiveness of REIT assets.

The operations of a REIT are governed by a trust deed, which specifies how the manager manages and administers the REIT in line with its objectives.

REIT is also regulated by the Securities Commission in terms of how much it could borrow to invest in real estate. This basically prevents a situation where a REIT becomes overgeared and unable to repay its debt obligations.

The best thing about REIT is its dividend-yielding nature, where it distributes up to 90 per cent of its taxable income to investors.

REIT investment has also brought a good amount of profits for its investors, averaging between six and eight per cent.

Affin Investment Bank maintains its neutral stance on the M-REIT sector.

Based on its research note in April, it said the M-REITs cycle is peaking, while the outlook for upward rental reversion appears to be moderating.

“We believe that the M-REITs sector remains a landlord’s market until 2017. Our ‘neutral’ rating is underpinned by our view that the M-REITs’ yield spread against the 10-year MGS may plateau. The stable economic growth may underpin the M-REITs’ stability amid rising inflation,” it said.

In Malaysia, there are currently 14 REIT counters and the policy of growth rests with the board of each REIT manager of the respective REITS.

With today’s economic climate, the larger M-REITs, such as those above RM1 billion in market capitalisation, are performing better than the smaller ones and command premiums to their net asset values (NAVs).

“It points to the ability of the respective REIT managers to grow the size and returns of the various trusts.

Availability of suitable assets that are yield-accretive can be very challenging, especially for the office and mall sectors, where prices are currently sky high and yields are very low.

“The acquisition policy of all the REITs now is either from third parties or from their respective promoters.

What can be done would be to allow M-REITs to develop up to 10 per cent of their asset size like in Singapore and Hong Kong, where the regulators have recognised the difficulties of REIT to grow in the traditional manner,” Axis REIT Managers Bhd (ARMB) chief executive officer Datuk Stewart LaBrooy told Property Times.

On whether there are enough assets available for M-REITs to grow, LaBrooy said there is no shortage of products coming into the market.

“There is a large number of malls and offices being built both in the Klang Valley and Johor that could, over time, become acquisition targets for M-REITs with those asset classes in mind. The glut may drive down prices and offer REITs an opportunity to acquire assets at more attractive prices. The respective managers have to be able to read the cycle and act accordingly,” he said.

“In performance terms, we have tracked the Kuala Lumpur stock exchange fairly closely and in past years outperformed the exchange.

Other M-REITs have displayed similar characteristics,” LaBrooy said.

ARMB is the manager for Axis Real Estate Investment Trust Managers Bhd (Axis REIT), which has a market cap of RM1.53 billion. The trust has 30 properties worth about RM1.52 billion.

Axis REIT is proposing to acquire three new properties for RM280.5 million.

Labrooy said the total asset value of the fund will be RM1.87 billion after the acquisition of the new properties, of which sale and purchase agreements (SAP) have been executed on August 4.

The properties are located in prime areas in Shah Alam.

Axis REIT is also in the midst of acquiring two industrial facilities in Penang, and Johor for RM191.5 million where the vendors have accepted its Letters of Offer.

With the signing of the SAP for the two industrial properties, the fund will cross the RM2 billion mark in total assets, LaBrooy said.

He added that the acquisition of all the five properties is expected to be completed by the end of this year, and they are expected to generate a net income (before financing cost) of seven per cent each.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmFirst REIT posts bigger H1 revenue

BusinessTimes

AMFIRST Real Estate Investment Trust (AmFIRST REIT), the country's oldest property trust, saw a 63 per cent increase in revenue to RM45.4 million for the first half ended September 30 2008.

Net profit surged by 50 per cent to RM29.8 million from RM19.82 million a year ago.

The growth was attributed mainly by profit from its newly-acquired units at The Summit Subang USJ, which started to contribute from April 1.

There was also organic growth from positive rental reversion from tenancy renewals and tenant replacement, its manager Am ARA REIT Managers Sdn Bhd said in a statement yesterday.

As at September 30 2008, the average occupancy rate of AmFIRST's total properties stood at 88.26 per cent.

Am ARA chief executive officer Lim Yoon Peng said global uncertainties over real estate valuations, which developed during the period under review, have had an impact on investors' view on REIT stocks, reflected in depressed unit prices, and Malaysian REITS were not spared.

"Nevertheless, we believe fundamentals of the Malaysian property market remain firm," he said.

"REIT with good occupancy rates and strategies for development will be able to maintain steady dividend streams arising from the middle- to long-term nature of their tenancies, to the benefit of their unitholders," he added.

Lim said Am ARA will continue to extract the best value out of the existing assets in the trust's portfolio as there is still room to further improve the earnings capacity and potential.

AmFirst, listed in December 2006, is one of the larger commercial space REITs in Malaysia with six properties worth RM840 million in its portfolio. They are Bangunan AmBank Group, Menara AmBank, AmBank Group Leadership Centre, Menara Merais, Kelana Brem Towers and The Summit.

AmFIRST aims to diversify its portfolio via investments in profit-producing real estate, primarily used for commercial, retail and office purposes.

A distribution of 4.268 sen per unit, representing 100 per cent of AmFirst income after tax, has been declared. Based on AmFirst's market price of RM0.88 per unit (as at September 30), the distribution per unit represents an annualised yield of 9.7 per cent.


Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Malaysia eases rules for REIT managers

BusinessTimes

THE Securities Commission (SC) has relaxed foreign ownership rules for property trust managers, among others, as it seeks to spur the industry further.

Under the revised Guidelines for Real Estate Investment Trusts, foreigners can now hold up to 70 per cent of a REIT management company, from 49 per cent since 2005.

The revised guidelines, which came into effect yesterday, also provide greater flexibility for REIT managers to manage their portfolio mix.

"Following the measures announced in Budget 2008 to encourage foreign REIT management companies to set up operations in Malaysia and list their REIT on Bursa Malaysia, the REITs guidelines now allow a portion of a REIT's portfolio to consist of real estates that it does not wholly own or have a majority ownership.

"REIT managers are also able to raise funds faster for acquisitions or capital expenditure purposes," the SC said in a statement.

The managers can seek a general mandate from unitholders to issue up to 20 per cent of its fund size. Previously, the issuance of any number of new units required REIT managers to hold meetings to seek unitholders' specific approval.

Additionally, the SC's prior approval on real estate valuation is now only required where acquisition of a real estate is financed, or re-financed within one year, through the issuance of new units.

In all other circumstances, the SC will conduct a post-review of the valuations to ensure that they are reasonable and well-supported.

To strengthen investor protection, REIT managers must appoint a designated person responsible for compliance.

To further safeguard investor interest, REITs will not be allowed to buy non-income generating real estates such as vacant land, and may only buy

property that is under construction or uncompleted real estates up to 10 per cent of its total asset value.

It also introduced related party transaction rules and trustees now have a greater role to play in such deals.

Additionally, the revised REIT guidelines require principal advisers to comply with the guidelines on principal advisers for corporate proposals. These specify who can act as principal advisers for the submission of corporate proposals to the SC, in addition to the required competency standards for principal advisers when dealing with corporate proposals involving initial public offers of REITs on Bursa Malaysia.

The REIT guidelines also make reference to the need to comply with the guidelines on due diligence conduct for corporate proposals which sets out the SC's expectations on issuers, advisers and experts in their conduct of due diligence to ensure that investors can make informed investment decisions based on sound and accurate information.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmFIRST outperforms prospectus forecast

TheEdge

KUALA LUMPUR: AmFirst REIT posted a net property income of RM40.64 million on the back of revenue RM57.85 million for the financial year ended March 31, 2008, outperforming its forecast stated in its listing prospectus.

In a statement yesterday, AmFirst manager Am ARA REIT Managers Sdn Bhd said the increase in revenue and income was mainly owing to the contribution from Kelana Brem Towers, which was acquired in June 2007, six months into AmFirst’s listing.

It said at the distributable income level, AmFirst achieved RM31.3 million against the projected RM31.1 million for the financial year.

“This translates to a distribution per unit (DPU) of 7.3 sen which gives unitholders an attractive distribution yield of 8.39% based on closing price of 87 sen for AmFIRST on March 31, 2008,” it said.

Am ARA REIT said it intended to pay out a DPU of 3.676 sen for the six-month period ended March 31, adding that 3.623 sen had earlier been paid out last November.

Am ARA REIT acting chief executive officer Anthony Ooi said the company was pleased to outperform its forecasts in terms of revenue, net property income and distributable income.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

AmFirst REIT moves to shed old perception

BusinessTimes

AMFIRST Real Estate Investment Trust (REIT), the country's oldest property trust, is working hard to shed a past perception when it comes to performance.

Previously known as the AmFirst Property Trust, the fund was the first to go public on the local bourse 18 years ago as part of the government's plan to kick-start the industry.

Performance of the sector was generally viewed as lacklustre as proper legislation was lacking before to spur growth."It is not that the market perception on AmFirst was bad. To put it in perspective, it was listed back then to answer to the government's call to set up property trusts.

The fund was started to include AmBank's own buildings," AmMerchant Bank Bhd's executive director Pushpa Rajadurai said in an interview with Business Times.

Since then, there was no change in the regulations that govern property trust, until 2005. And AmFirst had almost immediately taken steps to look at revamping the old property trust according to the new REIT guidelines. It remains the only one of three old property trusts that have been rebranded and re-listed on Bursa Malaysia.

We know that in REIT, it is good to bring in an independent property manager. ARA Management has the expertise in this area and that's why we've tied up with them," Pushpa pointed out.

Singapore-based ARA Asset Management Ltd, an affiliate of Hong Kong's real estate giant Cheung Kong Group, was roped in to own a 12.5 per cent share of AmFirst REIT. It also owns 30 per cent of the trust manager, Am ARA REIT Managers Sdn Bhd.

"The change has already been reflected in our strategy. Since ARA came in, our asset size has increased and the dividends per unit were boosted," she said.

AmFirst's asset size has swelled to RM835 million recently after it bought all the unsold units of The Summit Subang USJ, which comprises an office tower, a retail mall and a hotel.

The purchase boosted its dividends by two sen per unit for the financial year to March 2009, bringing the total forecast distributions to 9.3 sen gross per unit. Michael Lim, a director of ARA Management, said AmFirst will spend at least RM6.5 million this year to upgrade three buildings - Menara Ambank, Menara Merais, and AmBank Group Leadership Centre

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

More Foreign Investors Keen To Invest In REITs

Bernama

KUALA LUMPUR, Jan 24 (Bernama) -- More foreign investors are interested to invest in real estate investment trusts (REITs) in the region.

AmanahRaya-JMF Asset Management Sdn Bhd managing director, Datuk Mohamed Azahari Mohamed Kamil, said currently, Singapore and Malaysia dominated the REIT markets in South-East Asia with a total market capitalisation of approximately US$22 billion (US$1=RM3.27).

He said this at REIT Review Asia 2008 conference in Singapore on Tuesday.

He said yield for Malaysian REITs of seven percent was considered attractive to investors, especially for those who sought long-term stable returns on investments in the real estate sector.

"With 11 REITs listed on the Bursa Malaysia with a total market capitalisation of US$1.6 billion, there is lot of growth potential especially in terms of more acquisitions of more assets by the existing REITs as well as new REITs to be listed in future.

"There is also Middle East interest to list their properties through REITs in Malaysia and Singapore," he said.

He said AmanahRaya, as one of the leading REIT players with assets of RM645.52 million, hoped that the market would continue to grow this year.

"AmanahRaya will be one of the active contributors towards the growth of regional REITs through its recent collaboration with Gapuraprima Group, an Indonesian developer listed on the Jakarta Stock Exchange," he said.

Mohamed Azahari said the company expected an increase in the market capitalisation in Singapore and Malaysia and was confident more investors would consider investing in REITs.

"With the recent sub-prime, credit crunch and banking crisis, there will be opportunities for asset managers to conduct portfolio rebalancing and we believe that REITs will continue to be preferred.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Starhill REIT 6-month net income up 14.6pc

BusinessTimes

STARHILL Real Estate Investment Trust (Starhill REIT) reported a revenue of RM53.58 million for the six months ended December 31, 2007, an increase by 11.8 per cent over the RM47.94 million posted in the same period of 2006.

Net income for the period grew to RM40.11 million compared to RM35.00 million, an increase of 14.6 per cent.

The improved performance was due mainly to rentals received from The Residences at The Ritz-Carlton, Kuala Lumpur, coupled with higher rental rates received from the renewal of existing tenancies and the commencement of new tenancies at Starhill Gallery and Lot 10 Shopping Centre.

“Starhill REIT’s portfolio of high-end, prime properties continued to register strong performance for the first half of the 2008 financial year, underscoring the high quality of these assets and their ability to generate solid and sustainable levels of rental income for the Trust,” said Tan Sri Dr Francis Yeoh Sock Ping, in a statement today.

He is the chief executive officer of Pintar Projek Sdn Bhd, the manager of the Trust.

A distribution of 3.4025 sen per unit, representing some 100 per cent of Starhill REIT’s income after taxation for the six-month period ended December 31, 2007, was also recommended by Pintar Projek.

Based on Starhill REIT’s five-day volume weighted average unit price of 90 sen, the proposed distribution represents an annualised yield of 7.56 per cent.

As at December 31, 2007, Starhill Gallery and Lot 10 had occupancy rates of 96 per cent and 98 per cent, respectively.

The Trust was established on November 18, 2005. It has a property portfolio comprising three prime properties situated in the heart of Kuala Lumpur’s Golden Triangle, namely Starhill Gallery and the adjoining JW Marriott Hotel Kuala Lumpur, and 137 parcels and two accessory parcels of retail, office, storage and other spaces within Lot 10 Shopping Centre.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

A shot in the arm for REITs

TheStar

MALAYSIAN real estate investment trusts (REITs) will be getting a shot in the arm in terms of international attention when Sunway City Bhd (SunCity) injects its stable of properties worth a whopping RM3bil to RM4bil into a REIT before year-end.

This may also set a precedent in the valuation and pricing of local REITS making their listing debut on Bursa Malaysia, which could mean that their market capitalisation could start from several billion ringgit instead of around RM1bil currently.

The largest Malaysian REIT in asset size so far is Starhill REIT, whose market capitalisation broke the RM1bil mark at the time of listing in December 2005.

However, SunCity’s REIT, which is yet to be named, is highly likely to surpass Starhill REIT in asset size – if the REIT were to be listed on Bursa Malaysia.

An analyst with a local research house said if this happened, SunCity’s REIT would set a new record that would surely raise the profile of local properties (under trusts) in the eyes of investors, especially foreign institutional investors.

“Starhill REIT set a significant milestone for the local REITs industry by hitting RM1bil, but SunCity’s REIT would propel properties under trusts into the international arena and show foreign investors that Malaysian properties are ready for the big boys’ league,” he said.

SunCity property investment managing director Ngeow Voon Yean said while the group favoured Bursa Malaysia for the listing of its REIT, the company had sought the advice of its investment bankers on whether it was better to list the REIT on the Singapore stock exchange.

“We have not decided where to list the REIT. It will depend on the advice of our investment bankers,” he told StarBiz yesterday.

SunCity told Bursa yesterday it would appoint investment bankers to assist in the listing of its REIT.

Ngeow said SunCity would have between 30% and 40% equity in the REIT post-listing and management control.

“We want to make it clear to everyone that we are not just disposing of our properties. We have a long-term interest in the REIT and will appoint a REIT manager to manage and enhance the properties under the REIT,” he said.

Ngeow said the REIT would be an integrated trust with a variety of properties for various businesses.

“We will have properties ranging from retailing to education and even tourism,” he added.

He said the REIT would grow through property acquisitions channelled from a pipeline of properties under SunCity and third party transactions.

Ngeow said the trust would not discount the possibility of acquiring properties from neighbouring countries.

It would be fair to conclude that the Malaysian REITs industry has grown substantially in a relatively short time.

The first Malaysian REIT, Axis REIT, was listed on Aug 3, 2005 with four properties worth a total of RM296mil.

Today, Malaysian properties under trusts are worth billions of ringgit, irrespective of where they are listed.

A case in point is Starhill REIT. And the impending listing of SunCity’s REIT clearly shows how fast Malaysia’s REITs have progressed within a span of 2½ years.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

SunCity to launch RM3.7bil REIT

TheStar

PETALING JAYA: Sunway City Bhd (SunCity) is on track to list the country’s first integrated resort real estate investment trust (REIT) this year but is still undecided between Malaysia and Singapore.

Property investment managing director Ngeow Voon Yean said the company had appointed RHB Investment Bank and Goldman Sachs global joint coordinators for the REIT’s initial public offering (IPO) exercise.

CIMB and UBS Investment Bank have also joined the panel of joint book runners for the IPO exercise.

“We are waiting for our consultants to compile all the necessary details on the IPO structure and the asset valuation before deciding on the venue for the listing,” Ngeow told StarBiz yesterday.

SunCity’s REIT, with assets valued at RM3.7bil, is touted to be the largest in the country and will see the group inject a host of its prime properties into the REIT.

Among the assets to be injected are the Sunway Pyramid Mall and its annexe – totalling 1.7 million sq ft of net lettable space; the 4.8ha Monash University campus, Sunway University College, Sunway Carnival Mall in Penang and Tambun Hypermarket in Ipoh.

Other investment-grade properties to be included are the Sunway Resort Hotel & Spa, Sunway Pyramid Hotel and Menara Sunway.

The investment bankers will kick off the structuring process of SunCity, studying the viability of injecting the company’s investment properties into a REIT and the plan to grow the REIT with the injection of other and future developments.

Ngeow said the floatation would streamline the group’s businesses, allowing the company to focus its attention on property development while divesting long-term yield properties to the REIT. The process is designed to also enhance SunCity’s earnings visibility.

“The outlook for the retail, hospitality and commercial segments is encouraging and SunCity’s assets, backed by its integrated resort development concept, will allow the REIT a diverse yet synergistic earnings base,” Ngeow said.

“By unlocking the value of our assets, SunCity will be in a stronger cash position to expand into the property development business, both locally and abroad. We will also look into developing properties for future injection into the REIT.”

He said SunCity’s track record in investment assets would contribute to the continued growth of the REIT.

The REIT offering is also part of the company’s strategy to maximise shareholders’ value through asset restructuring.

“Setting up the trust will create value for our shareholders through the realignment of assets within the tax efficient REIT structure.”

An analyst with a local brokerage said SunCity provided the best exposure to REIT play, given its reasonably heavy reliance on property investment income and undemanding valuation.
Presently, property investment contributes 40% of the company’s revenue with property development making up the balance.

In a recent research note, Aseambankers said the REIT’s listing would be timely, given the rising capital value of commercial properties in Malaysia.

Moreover, SunCity’s diversification into emerging countries like India, Cambodia and soon, Vietnam and China, will also help it broaden its earnings base and provide new avenues for growth.

SunCity can look forward to a bullish financial year ending June 30, 2008 (FY08), with encouraging sales from the conclusion of en bloc sales of RM171mil for Sunway South Quay condominiums and RM219mil from Sunway Palazzio.

Sales in the first-half of the financial year totalled RM924mil, achieving 68% of its FY08 sales target of RM1.35bil. It also has unbilled sales of RM1.2bil.


Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

REIT there with the best

TheStar

ALTHOUGH Atrium REIT (real estate investment trusts) is among the smallest in terms of market capitalisation (RM130mil), it has in the past several months been enjoying quite a bit of the limelight.

Yield is comparable with the larger REITs and probably by virtue of its size and focus, it is probably also more pliable and dexterous.

Briefly, Atrium REIT’s focus is in logistics warehousing, a service industry that complements the country's export-oriented industries. Other REITs may have their focus on retail, commercial or office rental business.

As early as August, AmResearch has initiated coverage on Atrium with a Buy call that has a target price of RM1.48.

“Although we are in October,” analyst Chong Tjen-San says, his buy call remains. Just last week, he repeated the buy call.

He says Atrium has entered into a sale and purchase agreement to buy an industrial building at Senai Industrial Park for RM12.5mil cash.

“Rent is locked in for the next five years with multi-national company Flextronics Technology (M) Sdn Bhd until 2011. They have the option to renew that tenancy for another five years,” Chong says.

From this single statement, it is possible to outline Chong’s Buy call for Atrium.
First, it's the way Atrium manages its business. They deal with MNCs, not just anyone. Most of their tenants are from the Fortune 500 list.

Secondly, their rental agreement is between five to six years. This spells stability.

Third is their choice of locations. Most of the places where their properties are sited are very strategic. Other than this recent purchase, most of their properties are freehold.

The recently purchased property sits on seven acres of leasehold land expiring in 2054. Chong says that based on the annual gross rental yield of 9.6% and having considered the incremental property and non-property expenses and higher borrowing costs, he expects the acquisition to raise its financial year 2008 dividend per unit by 5% to 8.7 sen from 8.3 sen previously.

The acquisition will increase the gearing ratio to 33% from 28% currently, he says.

“We expect it can afford another acquisition to the tune of RM55mil before hitting the 50% gearing limit,” Chong says, adding that Atrium has said it will not exceed a gearing level of 40%.

Although the acquisition (RM12.5mil) is small – it raises its total asset size to RM171mil from RM158mil – Atrium is expected to be the fastest growing REIT on Bursa Malaysia.

“Before the year is over, it will have RM50mil more in purchase. The tenant will also be Flextronics,” he says.

By the end of 2008, Atrium is expected to have additional RM229mil worth of acquisitions to more than double its asset size to RM450mil.

“Atrium’s acquisition pipeline is highly realisable. Comparing Atrium with Axis REIT, he says the valuation gap between them is expected to close as Atrium’s asset size increases at a faster pace and with better quality tenant.

While Chong makes an overall comparison of the two, another source says it is best to be wary comparing apples and oranges. “Although it is fine to make a surface preliminary judgement, it is wise to take into account that Axis is into industrial space with an office space component while Atrium is predominantly logistics. There is demand for both, particularly for Grade A office space in Kuala Lumpur and the logistics business is good at present.”

On the overall Malaysian REIT horizon, another research house says winners in the REIT business will be those which have attractive underlying assets, a good asset pipeline and proven acquisition tract record.

Besides its recent acquisition in Senai, Atrium’s assets are located in Shah Alam, Puchong and Rawang. The growing trend of outsourcing of logistic services will boost Atrium’s income. It is estimated that third party logistics (outsourcing of the logistics component by MNCs) is expected to grow to US$28bil in revenue by 2012 from US$15bil last year. The market in Malaysia is expected to be worth US$3.5bil in 2007 (2006: US$3.3bil).

The overall increase in property prices in the country in all sub-sectors of property, also bodes well for the REIT business. Rising property prices usually parallel rental yield.

The oil factor is another element. Oil prices have hit the unprecedented US$90 a barrel. This will have a domino effect across all sectors of the economy, from transport to building raw materials. With cost of construction expected to rise further, property prices are expected to move up, hence the importance of having solid assets.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Sunway City plans RM3bil REIT Gross distribution for two funds

TheStar

KUALA LUMPUR: Sunway City Bhd plans to set up the country’s biggest real estate investment trust (REIT) worth RM3bil in the second half of next year.

“We will be evaluating our options next month” on where the REIT should be listed, group financial controller Koong Wai Seng said in a phone interview.

Money raised from the REIT would be used to fund the acquisition of more land, he said.
Sunway City would sell properties including two of its hotels, a shopping mall, a university campus and houses to the REIT. – Bloomberg


Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.

Axis REIT properties revaluedto RM334m

TheEdge

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) announced a revaluation surplus of RM30 million to be incorporated in its fund following the revaluation of its five properties in Petaling Jaya, Selangor.

In an announcement yesterday, it said the properties’ total net book value was RM334.2 million following the revaluation exercise in August compared with RM304.27 million as at June 30, 2007.

The five properties were the 14-storey Menara Axis, six-storey Crystal Plaza office building, five-storey Axis Plaza warehouse-cum-office building, four-story Infinite Centre industrial complex and Axis Business Park.

Revaluation of the properties had been in accordance with the Securities Commission’s REIT guidelines, stipulating a once-in-three years revaluation of property for SC approval before being incorporated into the fund, it added.

Disclaimer: Reading materials in this site are obtained from its respective website and it is for information purposes only. It is not Malaysia Unit Trusts - administrator view and it is not to be used against Malaysia Unit Trusts - administrator.