Starhill REIT Makes Good Debut
Starhill Real Estate Investment Trust (REIT), made a decent debut on the first day of trading, and accounted for 31% of the total trading volume.
It opened at RM1.07, and closed at RM1.03, or seven sen above the retail offer price of 96 sen. There were 97.89 million shares done, representing about 40 per cent of the day’s total trading volume.at prices ranging from RM1 to RM1.07.
The Edge reports that:
TA Securities Research had accorded a fair value of RM1.17, given the tremendous growth potential of its assets.
YTL Corp raised RM513 million from the IPO, which is Malaysia’s largest property trust to be listed so far. Starhill’s IPO was 8.8 times subscribed when it closed Dec. 1. Some 94% of the IPO units were sold to institutional investors via book-building at MYR1.01 each.
Starhill, Malaysia’s first REIT to be marketed overseas in over a decade, also sold units to individual investors at MYR0.96 each. In total, Starhill sold 49% of the REIT, or 509.6 million units, raising about MYR513.2
million.
The diversified YTL Corp. (4677.KU) conglomerate, headed by managing director Francis Yeoh, controls 51% of Starhill post-IPO. Pintar Projek Bhd., a 70%-owned YTL unit, will manage the REIT.
Starhill has committed to paying out 100% of its earnings in dividends in 2006 and 2007. At MYR1.03 a unit, the REIT will yield about 6.1%, significantly higher than 12-month term bank deposit rates of 3.7%.
Other postings in Property Malaysia on Starhill REITs:
YTL launches Starhill REIT
YTL to Launch Starhill REIT in October
Other postings in Property Malaysia on REITs in general:
Axis REIT to Buy Two More PJ PropertiesUOA Offers REITs Today
Budget Boost for Malaysian REITs
Budget 2006: Effects on Housing & Property Sector
About Malaysian REITs
How Secure Are REITs?
dear admin,
Legally, do i need to pay tax from the dividend i received from REITs. Isn’t it that these REITs already paid tax from the rental they received?
Comment by laming — December 19, 2005 @ 4:45 pm
maybe some legal experts out there can answer this one…
Comment by Administrator — December 19, 2005 @ 4:59 pm