YTL to Launch Starhill REIT in October
YTL have just announced that they plan to sell shares in Starhill REIT in October this year, as announced in their official website.
The full text of the press release is also published by Business Times.
Excerpted below are some of the highlights:
YTL Corp, the country’s biggest builder, plans to sell shares in its Starhill Real Estate Investment Trust (REIT) in October, aiming to take advantage of a relaxation in rules for property trusts in the country.
YTL is selling its JW Marriott, Starhill Shopping Centre and part of Lot 10 Shopping Centre in Kuala Lumpur’s main shopping belt to the REIT for RM1.2 billion, the company said earlier.
The Securities Commission (SC) has approved as many as four trusts to be listed this year, and as many as five, valued at RM2 billion, may start trading next year, said Kris Azman Abdullah, director of issues and investment at the SC.
The assets that YTL is injecting into the REIT are of very good quality and are prime, grade-A buildings right in the heart of the shopping district of Kuala Lumpur,” said Gan Kim Khoon, head of research at AmSecurities Sdn Bhd.
Starhill REIT will have a fund size of 1.04 billion units and offer a yield of 6.19 per cent, YTL said on July 7.
The property generated RM21.2 million in rental income in the year ended June 2004 and is 98 per cent occupied.
“All the REITs in Malaysia will do very well because it’s a new asset class for many investors and yields can be quite attractive relative to the returns you get from other types of cash assets or fixed deposits and money market deposits,” said Gan.
According to the report, Landmarks Bhd, a local property and hotel group, will be the next to issue REITs.
