CapitaLand targets RM2b REIT listing by Dec

CAPITALAND Ltd, Southeast Asia's largest real estate company, plans to list a RM2 billion property trust of Malaysian shopping malls on Bursa Malaysia by the end of the year.

It submitted the request to the Securities Commission recently and expects an approval before October.

"The reason why we have done all the preparation is to do it (list it) before the end of the year. Of course, at the end of the day, it is all dependent on the market," said CapitaLand chief investment officer Kee Teck Koon.

Currently, its retail assets include Sungei Wang Plaza in Kuala Lumpur, Gurney Plaza in Penang and Mines Shopping Fair in Seri Kembangan, Selangor. In June, it bought 62 per cent of Sungei Wang Plaza's retail area for RM595 million.

Kee was speaking to the media after the topping-up ceremony for the Tower D project in KL Sentral, Kuala Lumpur.

The commercial building, located next to Sooka Sentral and opposite the Sentral rail station, has seen strong tenant interest.

"So far, about 65 per cent of its total net lettable space of 355,323 sq ft has been taken up, mainly by foreign companies. We expect it to be fully tenanted by end of this year," said Quill Group of Companies director Datuk Michael Ong.

Construction is scheduled to be completed in the first quarter of next year.

It expects demand for top-grade commercial space to remain robust as demand is stronger than supply, mainly in areas near KLCC and in Sentral.

"The Malaysian real estate market is undergoing a stage of rapid growth following the country's healthy economic performance over the past few years," said CapitaLand Commercial Ltd chief executive officer Wen Khai Meng.

Tower D is developed by Quill Realty Sdn Bhd, which is 60 per cent owned by Quill and 40 per cent by Malaysia Commercial Development Fund (MCDF).

MCDF is managed by MCDF Management Pte Ltd, an indirect wholly-owned unit of CapitaLand with Aseambankers Malaysia Bhd as its main adviser.

By New Straits Times (by Goh Thean Eu)