By Sharen Kaur
sharen@mediaprima.com.my
Published in NST on April 9, 2013
"A year ago the stock price for KLCC Property was RM3.80. It's now above RM7. We can't be anymore bullish than the current price. I believe the market has already factored in everything," he said.
KLCC Property was down four sen yesterday to close at RM7.05. The current share price reflects a 12.7 per cent premium to the net asset value of the company.
There will be investor appetite for the stapled REIT because of the yields and backing from Petroliam Nasional Bhd.
All the assets are fully occupied with a 15-year tenancy.
Under an agreement with the tenants, there will be an upward adjustment in the rentals every three years by three per cent.
The new stapled security structure is also committed to paying more than 90 per cent of its distributable income as dividends.
Hashim said more assets would be injected into the REIT such as Kompleks Dayabumi, which is currently being upgraded to include a new high-rise office tower, and a new building structure nearby Mandarin Oriental.
"We have 0.6ha (site) nearby the hotel. We are talking to multinational companies to be the anchor tenant. Once that is established, building construction would commence. It may be a replica of Menara 3 Petronas, which has a retail component," he said.
sharen@mediaprima.com.my
Published in NST on April 9, 2013
KLCC REIT, which will be called KLCCP Stapled Group after a corporate restructuring, is
expected to be listed in early May.
KUALA LUMPUR: KLCC Property Holdings Bhd's new stapled real estate investment trust (KLCC REIT) is set to become one of Asia's largest listed groups with RM15.4 billion in assets and nearly RM13 billion market capitalisation upon listing.
KLCC REIT, which will be called KLCCP Stapled Group after a corporate restructuring, is the first syariah-compliant stapled REIT in the country.
KLCC Property group chief executive officer Hashim Wahir said the REIT is expected to be listed in early May.
To achieve a stapled REIT structure, KLCC Property will have to undertake three key restructuring steps.
The first is to acquire the remaining 49 per cent shares in Midciti
Resources Sdn Bhd, the owner of Petronas Twin Towers, from KLCC Holdings
Bhd (KLCCH), for RM2.86 billion.
The second step is for KLCC Property to rationalise its portfolio into a more efficient structure by injecting the Petronas Twin Towers, Menara ExxonMobil and Menara 3 Petronas into KLCC REIT.
The last step is stapling of KLCC Property shares to KLCC REIT units, which will be quoted as a single security and traded on the Main Market of Bursa Malaysia.
Shareholders of KLCC Property approved the company's proposed stapled REIT structure at its extraordinary general meeting (EGM) here yesterday.
"This is a very interesting exercise. It will provide Bursa Malaysia with a very large REIT going forward," Hashim said after the EGM.
Hashim is bullish on the performance of the stapled REIT.
KUALA LUMPUR: KLCC Property Holdings Bhd's new stapled real estate investment trust (KLCC REIT) is set to become one of Asia's largest listed groups with RM15.4 billion in assets and nearly RM13 billion market capitalisation upon listing.
KLCC REIT, which will be called KLCCP Stapled Group after a corporate restructuring, is the first syariah-compliant stapled REIT in the country.
KLCC Property group chief executive officer Hashim Wahir said the REIT is expected to be listed in early May.
To achieve a stapled REIT structure, KLCC Property will have to undertake three key restructuring steps.
The second step is for KLCC Property to rationalise its portfolio into a more efficient structure by injecting the Petronas Twin Towers, Menara ExxonMobil and Menara 3 Petronas into KLCC REIT.
The last step is stapling of KLCC Property shares to KLCC REIT units, which will be quoted as a single security and traded on the Main Market of Bursa Malaysia.
Shareholders of KLCC Property approved the company's proposed stapled REIT structure at its extraordinary general meeting (EGM) here yesterday.
"This is a very interesting exercise. It will provide Bursa Malaysia with a very large REIT going forward," Hashim said after the EGM.
Hashim is bullish on the performance of the stapled REIT.
"A year ago the stock price for KLCC Property was RM3.80. It's now above RM7. We can't be anymore bullish than the current price. I believe the market has already factored in everything," he said.
KLCC Property was down four sen yesterday to close at RM7.05. The current share price reflects a 12.7 per cent premium to the net asset value of the company.
There will be investor appetite for the stapled REIT because of the yields and backing from Petroliam Nasional Bhd.
All the assets are fully occupied with a 15-year tenancy.
Under an agreement with the tenants, there will be an upward adjustment in the rentals every three years by three per cent.
The new stapled security structure is also committed to paying more than 90 per cent of its distributable income as dividends.
Hashim said more assets would be injected into the REIT such as Kompleks Dayabumi, which is currently being upgraded to include a new high-rise office tower, and a new building structure nearby Mandarin Oriental.
"We have 0.6ha (site) nearby the hotel. We are talking to multinational companies to be the anchor tenant. Once that is established, building construction would commence. It may be a replica of Menara 3 Petronas, which has a retail component," he said.
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