Allstones to set up RM750m fund

ALLSTONES Group Asia will set up a RM750 million property fund here by early next year to invest in distressed assets in Southeast Asia, founder and chairman K.H. Sim said.

The property development and investment group is also mulling to launch a real estate investment fund (REIT) in Malaysia or Singapore.

"I prefer a REIT instead of getting the company listed as we rather take the development risk ourselves and provide steady income to investors. We are building our investment portfolio," Sim said.

"In my view, REIT is quite an interesting valuation as it allows developers to monetise the assets. REIT is also a secured investment against buildings and assets," he said in an interview with Business Times in Kuala Lumpur recently.
On the fund, Sim said he is talking to a Singaporean and an Australian group as well as a local private investor to invest and make up about 10 per cent of the fund. The rest will be held by insurance and pension funds.

By Business Times