Amanah Raya to list 2nd REIT next year

December 16 2006

AMANAH Raya Bhd (ARB) plans to list its second real estate investment trust (REIT) in Malaysia as well as in Dubai by the second half of next year, said its managing director Datuk Ahmad Rodzi Pawanteh.

The value of the REIT is expected to be US$500 million (RM1.7 billion), a size deemed fit to attract foreign investors, especially those from the Middle East.

"The returns will definitely be higher than the first given that it is an Islamic REIT. With the recent dual listing regulations, we may list it here and in Dubai," he told reporters in Kuala Lumpur.

ARB has signed a memorandum of understanding with Macquarie Group and Faisal Private Bank yesterday to leverage on their corporate advisory and offshore Islamic banking services.

First logistic-focused industrial REIT

By Joyce Goh


Atrium Real Estate Investment Trust (Atrium REIT), the first logistic-focused industrial REIT, will have an initial portfolio of properties with about 809,668 square feet.
“The initial approved portfolio of investment properties comprises four freehold industrial properties with a combined net lettable area of approximately 809,668 sq feet leased to reputable and financially strong multi-national tenants,” said chairman of Atrium REIT Managers Sdn Bhd, Zakaria Meranun.

The four prime properties consists of three warehouses, namely the Exel and TNT logistics warehouses in Shah Alam, the DHL logistics warehouse in Puchong and a manufacturing plant leased to Unileaver in Rawang.

“The management has plan to double up the size within five years period. In the short term, we will try to exceed the one million sq feet target. Within five years, we will double up to 1.6 million sq feet,” said executive director of Atrium REIT, John Lim.

Future possibilities consist of warehouses in China, Vietnam as well as warehouses in Bukit Jelutong for a Swiss logistics company and a Japanese company.
“Atrium REIT’s principal objective is to invest, directly or indirectly, in a portfolio of income producing industrial and logistic real estate assets,” said Zakaria.
Chief executive officer of Atrium REIT, Wong Sui Ee said: “Trade is picking up in Southeast Asia because of China and India.
"Malaysia is a very strategic place for the goods to flow through China / India to the rest of the world,” she said.

“Logistics is definitely a growing industry. Malaysian total trade has exceeded RM1 trillion. More and more goods need to be distributed,” Lim added.
They were speaking to reporters after the signing of the underwriting agreement ceremony between Atrium REIT and Aseambankers Malaysia Bhd.

Atrium REIT will be making a public offering of 75.5 million units.
“The total issues is under RM150 million with offering around RM80 million,” said head of equity markets of Aseambankers, Francis Goh

The REIT has an approved initial fund size of 121.8 million units, whcih consist of 1,000 promoters' units, 46.3 million units for vendors Glory Blitz Industries Sdn Bhd and Sparkle Skyline Sdn Bhd and 75.5 million units for public.
Out of the 75.5 million units, 13.5 new units will be opened for public application, two million new units via pink form allocation and 60 million units will be for institutional investors via bookbuilding process.

Atrium REIT targets to be listed by the first quarter of 2007.

News Wednesday December 13, 2006

Starhill REIT to buy The Residences

KUALA LUMPUR: Starhill Real Estate Investment Trust's (Starhill REIT) proposed acquisition of property within The Residences at The Ritz-Carlton Kuala Lumpur will raise its total asset value by 10% to RM1.37bil.

The RM125mil purchase from YTL Corp Bhd unit YTL Land Sdn Bhd was for 60 serviced apartments, four levels of commercial podium block and two levels of basement car parks, Starhill REIT manager Pintar Projek Sdn Bhd said in a statement.

The transaction is expected to be completed by the first quarter 2007.

Pintar Project chief executive officer Tan Sri Francis Yeoh Sock Ping said the addition of The Residences property presented a timely growth opportunity to Starhill REIT to increase its exposure to key urban areas in Kuala Lumpur. “The acquisition is also expected to enable Starhill REIT to achieve an added level of cost aggregation and efficiency through the sharing of services with (nearby) Starhill Gallery and JW Marriott Hotel,” he added.

The purchase consideration will be satisfied via the issuance of 138.9 million new units in Starhill REIT to YTL Land, at an issue price of 90 sen per unit. The purchase price represents a 13.79% discount to the market value of the property.

YTL Land’s total cost of investment in The Residences Property was RM94.38mil.

After the transaction, YTL Land’s stake in Starhill REIT will rise from 54.85% (as of Nov 30) to 60.17%.

CapitaLand, Maybank set up M'sian real estate fund (Updated)

from biz time online

Singapore’s CapitaLand group has teamed up with Malayan Banking Bhd group to set up a closed-end private equity investment fund, Malaysia Commercial Development Fund (MCDF), with a target fund size of US$250 million (about RM887 million).

MCDF — CapitaLand’s first and one of the largest funds in Malaysia with an expected gross development value of US$1 billion — will allow investors to access a portfolio of prime real estate development projects in Malaysia.

The Singapore-based fund, which closes by the first quarter of next year, will acquire, develop, redevelop and realise profits in commercial and integrated projects in the Klang Valley.

The Maybank Group and CapitaLand Commercial and Integrated Development Ltd (CCID) will sponsor MCDF with MCDF Management Pte Ltd as the fund manager. Both CICD and MCDF Management are subsidiaries of CapitaLand.

Aseambankers Malaysia Bhd, the investment banking arm of Maybank, will act as the principal adviser to MCDF Management, providing advisory services on Malaysian capital market and funding issues.

In a statement on Dec 13, CapitaLand said MCDF’s seed investment is One Mont’Kiara, a mixed development comprising two office towers, a retail podium and car parks, on a 151,000 sq ft site at an estimated project cost of RM360 million.

CapitaLand said work on the project would start in the first quarter of next year for completion by the third quarter of 2010. It said One Mont’Kiara was an established upper middle-class residential area with a developed expatriate community.

It said separately, CCID woud also sign certain agreements to acquire two development projects, which may later be injected into MCDF.

In a separate statement, Aseambankers said MCDF provided an opportunity for international and regional investors to participate in the current growth phase of the Malaysian property sector.

Parties led by Aseambankers chief executive officer (CEO) Surachet Chaipatamamont and CCID chief executive officer Martin Tan are holding several roadshows in key Middle East cities, namely Bahrain and Dubai.

“With the setting up of MCDF, the first commercial development fund in Malaysia, the CapitaLand group will extend its international expertise in the real estate value chain and expand its integrated real estate and capital management business to Malaysia.

“It has successfully executed this strategy in other countries such as China. We will leverage on the skills and resources of several experienced real estate developers to tap into the tremendous growth potential in Malaysia’s real estate market,” said CapitaLand group president and CEO Liew Mun Leong.

CapitaLand said Malaysia was an attractive market opportunity as its real estate market was undergoing rapid growth, underpinned by healthy economic performance frequently boosted by the provisions in the five-year Malaysian Plans.

In Malaysia, CapitaLand has a 30% stake in the 50-storey Menara Citibank office tower, and a 40% stake in a joint venture with Quill Group to develop a premier office building in KL Sentral.

CapitaLand also has a 40% stake in Quill Capita Management Sdn Bhd, the manager of Quill Capita Trust, a real estate investment trust which recently launched its initial public offering.

Starhill REIT to buy The Residences

By Hamisah Hamid

STARHILL real estate investment trust (REIT) is buying service apartments known as The Residences at The Ritz-Carlton from YTL Land Sdn Bhd for RM125 million.

The deal, due for completion by the first quarter of 2007, is set to increase Starhill REIT's total asset value by 10 per cent to RM1.37 billion and reduce its gearing by 1.31 per cent to 13.09 per cent.

Tan Sri Francis Yeoh, the chief executive officer of Pintar Projek Sdn Bhd, the manager of Starhill REIT, described the acquisition as a yield-accretive acquisition that will further diversify and enhance Starhill REIT's asset base within the high-end luxury property segment.

The Residences - a 38-storey tower block adjacent to the Ritz-Carlton - comprises 60 serviced apartment units, four levels of commercial podium block and two levels of basement car parks. The value of the property as at September 25 was RM145 million.

Starhill REIT will issue 138.9 million new units of 90 sen per unit to YTL Land, a wholly-owned subsidiary of YTL Corp Bhd, to meet the RM125 million purchase price. Following the exercise, YTL Corp's stake in Starhill REIT will increase from 54.85 per cent to 60.17 per cent.

Quill Capita to raise RM140m via REIT listing

from biz times

QUILL Capita Trust, a property trust with an initial portfolio of four commercial assets in Cyberjaya, yesterday launched an initial public offering (IPO) that will raise about RM140.3 million.

The real estate investment trust (REIT), to be listed on January 8, is backed by Singapore's CapitaLand Group and Malaysia's Quill Group. Both groups will each hold 30 per cent of the trust upon listing.

Quill Capita Trust will distribute 100 per cent of its net earnings in the first three years to 2008, and at least 90 per cent in the subsequent years, Quill Capita Management Sdn Bhd chief executive officer Chan Say Yeong said. Quill Capita Management is the manager of the REIT.

The dividend yield is estimated at 7.14 per cent for the financial year ending December 2007 and 2008, and 7.32 per cent for 2009, based on the indicative retail price of 84 sen per unit.

Retail investors will pay the lower of 84 sen per unit, or 95 per cent of what institutional investors are paying under the IPO. The institutional price will be determined after a book- building exercise.

The four buildings in the portfolio - DHL 1, DHL 2, HSBC and BMW - are worth a combined RM280 million. The assets are all located in Cyberjaya and were designed, built and owned by the Quill Group.

"This REIT is small (by CapitaLand's standard). But it is a good vehicle which will help us to propel our growth in Malaysia," Chan told reporters after launching the listing prospectus in Kuala Lumpur yesterday.

The event was also attended by Tan Sri Dr Ahmad Tajuddin Ali, chairman of Quill Capita Trust, president of CapitaLand group Liew Mun Leong and Quill group's director Datuk Michael Ong.

Chan said both CapitaLand and Quill are committed in growing the trust with a long-term view in place. However, he did not give a clear expansion target, citing regulatory concerns.

Quill Capita Trust will grow by buying assets from the existing portfolio of Quill group and CapitaLand Financial Ltd, or from future vehicles or property funds created by the two groups to develop or incubate commercial properties, Chan said. The trust may also buy from third parties, he added.

Quill Capita Trust is focused on commercial properties here and ruled out stand-alone shopping mall and hotel for future buys.

The initial four buildings, complete with basement carparks, have a total lettable area of 493,113 sq ft and are 100 per cent occupied by multinational corporations on long-term tenancies with options to renew.