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Wednesday, June 2, 2010

Nod for Starhill REIT disposals

STARHILL Real Estate Investment Trust (Starhill REIT) unitholders yesterday gave the nod to dispose of Starhill Gallery and Lot 10 shopping centres in Kuala Lumpur for RM1.03 billion.

Pintar Projek Sdn Bhd, the manager of Starhill REIT, said the disposal of the two properties to Ara Bintang Sdn Bhd is part of a rationalisation exercise to reposition Starhill REIT as a hospitality REIT, the first of its kind in Malaysia.

The disposal will provide a platform to enable Starhill REIT to focus on a single and dedicated class of assets.

"We are happy that unitholders approved the sale. Now we can proceed with what we have intended to do," Pintar Projek chief executive officer Tan Sri Francis Yeoh said in Kuala Lumpur yesterday.
Starhill Gallery is being sold to Ara Bintang for RM629 million and Lot 10 at RM401 million.

The sales exercise, to be completed by the third quarter of 2010, will be satisfied by both RM625 million cash and Singapore dollar denominated convertible preference units in Starhill Global REIT worth RM405 million.

The disposal will unlock the value of Starhill Gallery and Lot 10 as Starhill REIT is expected to realise an estimated distributable income of RM204.18 million for the financial year ending June 30 2011.

By Business Times

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