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Thursday, April 8, 2010

Sunway City to place properties under REIT

KUALA LUMPUR: Sunway City Bhd (SunCity) and its subsidiaries are proposing to dispose their entire interest in selected properties to a real estate investment trust (REIT) to be set up by SunCity and listed on Bursa Malaysia.

The purchase consideration, which will be determined later, will be satisfied by way of cash or units in Sunway REIT or a combination of both, the company told Bursa Malaysia yesterday.

SunCity said the proposed properties would include the Sunway Pyramid Shopping Mall, Sunway Resort Hotel & Spa, Pyramid Tower Hotel, Menara Sunway, Sunway Carnival Mall, Sunway Hotel Seberang Jaya, Suncity Ipoh Hypermarket and Sunway Tower.

The company is also disposing three parcels of leasehold land measuring 19,406 sq metres in Selangor to its subsidiary Sunway Pyramid Sdn Bhd (SPSB) for a consideration to be determined later.

SunCity owns a 52% stake of SPSB while the other 48% stake is held by Reco Pyramid (M) Sdn Bhd.

SunCity has also proposed to acquire 48 million shares or 48% of SPSB from Reco Pyramid (M) Sdn Bhd (RPSB) and 9.6 million shares or 48% stake in Sunway Resort Hotel Sdn Bhd from Reco Resort Hotel (M) Sdn Bhd.

SunCity said the investment objectives of the Sunway REIT were to provide the unitholders with an exposure to a diversified portfolio of authorised investments that would provide stable cash distributions with the potential for sustainable growth of the net asset value per unit.

“Subject to the approvals of the relevant authorities, Sunway REIT proposes to undertake a public issue of units in Sunway REIT and subsequent listing of and quotation for its entire issued and paid-up units on the Main Market of Bursa Malaysia,” it said.

SunCity said the proposed disposal of the land and properties would allow the group to realise its investments in the properties.

The proceeds from the proposed disposal of the land and the properties would be used to acquire land bank, working capital, future business expansion and to repay the group’s borrowings, it said.

SunCity added that the disposal of the land and properties would also enable the group to enhance the development of the real estate investment market in Malaysia through its proposed holdings in the units in Sunway REIT as well as its involvement in the management of Sunway REIT upon the completion of the proposed listing.

SunCity said subject to the approvals of relevant authorities,

Sunway REIT has proposed to undertake a public issue of units in Sunway REIT on the Main Market of Bursa Malaysia.

By The Star

SunCity among top gainers in Thursday's morning trade

PETALING JAYA: Sunway City Bhd were among the highest gainers in Thursday’s morning trade. At 12pm, its shares rose 11 sen to RM3.81 with 619,000 shares traded.

The company announced yesterday it is proposing to dispose its entire interest in selected properties to a real estate investment trust (REIT) that will be established by SunCity and listed on Bursa Malaysia.

SunCity said the properties would include the Sunway Pyramid Shopping Mall, Sunway Resort Hotel & Spa, Pyramid Tower Hotel, Menara Sunway, Sunway Carnival Mall, Sunway Hotel Seberang Jaya, Suncity Ipoh Hypermarket and Sunway Tower.

The company is also disposing three parcels of leasehold land measuring 19,406 sq metres in Selangor to its subsidiary Sunway Pyramid Sdn Bhd for a consideration to be determined later.

SunCity said the investment objectives of the Sunway REIT were to provide the unitholders with an exposure to a diversified portfolio of authorised investments that would provide stable cash distributions with the potential for sustainable growth of the net asset value per unit.

By The Star

SunCity plans property stake sale to REIT

Property conglomerate Sunway City Bhd (SunCity) has proposed to sell all its stake in eight properties to a real estate investment trust for a price that has yet to be fixed.

The properties are Sunway Pyramid shopping mall, Sunway Resort Hotel & Spa, Pyramid Tower hotel, Menara Sunway, Sunway Carnival mall, Sunway Hotel Seberang Jaya, SunCity Ipoh hypermarket and Sunway Tower.

It also plans to sell three pieces of leasehold land in Selangor to Sunway Pyramid Sdn Bhd (SPSB).

SunCity also signed letter of intents to buy 48 per cent of SPSB and Sunway Resort Hotel Sdn Bhd.
The company has hired Maybank Investment Bank to arrange the proposals.

SunCity involves in property development and investments. Its crowning jewel is the RM5.6 billion Bandar Sunway, which spans an impressive 7.0 million sq ft in the Klang Valley.

By Business Times