CapitaMalls debuts at 1.5sen discount

CapitaMalls Malaysia Trust (CMMT), the country's largest shopping mall real estate investment trust (REIT), makes its debut today on the Main Market of Bursa Malaysia at 98.5 sen, a 1.5-sen discount over its institutional offer price of RM1 per unit.

Chief executive officer of CapitaMall Asia Ltd Lim Beng Chee said he was happy with the opening price because the retail investors were getting it at 98 sen while the opening price was 98.5 sen.

"This is just the day one pricing and they (CapitaMall Asia) has actually proven themselves to deliver with their active asset management," he told reporters after the listing ceremony today.

Lim said the company would start its RM2 billion asset development project within one year, based on the market situation.

He said retail investors were expected to get distribution yields of 7.2 per cent for the forecast period of 2010 and 7.6 per cent for 2011.

CMMT's initial public offering comprises 786.522 million units, of which 67.5 million were for retail investors (at 98 sen per unit) and the rest for institutional investors (at RM1 per unit).

CMMT is managed by CapitaMalls Malaysia REIT Management Sdn Bhd, a joint-venture between CapitaMalls Asia, which is one of Asia's largest shopping malls developers, and Malaysian Industrial Development Finance Bhd.

By Bernama

More Malaysians buying properties: iProperty

A iProperty.com consumer trends survey for the first half of this year showed more Malaysians looking to property for investment.

The online survey conducted on the iProperty.com Malaysia website, had the participation of 500 respondents and was aimed at getting key insights into Asian property buyers, including motivations for purchasing property and budgets.

In a statement today, the property website said of the 500 respondents, 47 per cent were looking to purchase a home whilst 31 per cent were investors seeking to expand their financial portfolio with real estate.

The survey showed motivation to invest for rental income dropped in 2010 whereas property investments for capital appreciation was on the rise.

It also said this increased preference to profit from resale could be attributed to rising property prices, as the Malaysian property market continues to improve.

A total of 43 per cent of the respondents were in the market for high-end properties valued between RM400,000 to RM5,000,000.

This represents a whopping 16 per cent increase in demand for high end properties with the RM500,000 to RM1,000,000 segment alone increasing by 10 per cent.

The survey pointed out that rising property prices, better rental returns and ultimately healthier resale profits, could be some of the reasons for an increased demand in high-end properties.

"As confidence in the property market grows, we are seeing more home buyers and investors turning to high-end properties as a means to profit from capital appreciation and expand their financial portfolios," said iProperty.com Malaysia, Country Manager, Ken Tsurumaru.

To meet this increasing demand for luxury properties, he said the incoming iProperty.com Export Luxury Collection Property Exhibition will be the biggest of its kind in Malaysia, showcasing luxury developments from across the globe.

By Bernama