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Thursday, June 3, 2010

EPF, PNB among Sunway REIT cornerstone investors

KUALA LUMPUR: Malaysian property developer Sunway City Bhd has secured four cornerstone investors who will buy 14% of the roughly US$500mil (RM1.65bil) initial public offering of its real estate investment trust (REIT).

The cornerstone investors are the Employees Provident Fund, state investment company Permodalan Nasional Bhd, the Government of Singapore Investment Corp Pte Ltd and insurer Great Eastern Life Assurance (M) Bhd, the company said in its draft prospectus.

The cornerstone investors will take up 376 million units at a price which is the lower of the institutional price and 98 sen each. The Sunway REIT, with a fund size of 2.78 billion units, is set to become Malaysia’s largest REIT when it is listed in the third quarter of this year.

It will feature some 1.65 billion units for public subscription, of which 1.5 billion are for institutional and selected investors, the company said in May.

The issue price of the Sunway REIT will be determined after a book-building process which is expected to close on June 24, according to the prospectus.

RHB Investment Bank and Credit Suisse are the joint global coordinators. The banks, along with Maybank Investment Bank, HSBC, JP Morgan and CIMB, are joint bookrunners.

Sunway City said last month it would receive RM2.7bil in cash and about 1 billion units in the REIT for the eight properties it will inject into Sunway REIT.

The properties, which comprise of shopping malls, office towers and hotels, have a combined market value of about RM3.7bil. The listing is targetted for July 8.

By Reuters

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