TA Enterprise plans to set up REIT

TA Enterprise Bhd plans to set up a Real Estate and Investment Trust (REIT) to unlock the value of its properties under management.

"If we were to put all the major assets into a REIT, then we can unlock the value and raise money to repay bank loans, while funding projects in the pipeline," its Chief Executive Officer, Datin Tan Kuay Fong said.

She was speaking to reporters after the company's annual general meeting here today.

However, she declined to reveal further details, as to when the company plans to launch the REIT.

"We will let you know when we ready. Currently, we are still exploring the opportunities," she said.

Meanwhile, TA Enterprise Bhd subsidiary, TA Global Bhd, has received shareholders' approval to jointly develop a hotel and residential building in West Georgia Street in Vancouver (Canada) with a Canadian company, Birkbeck Trust on a 50-50 basis.

The building has a projected Gross Development Value (GDV) of RM1.54 billion and is expected to generate a profit of RM423.46 million with both companies receiving an equal profit.

On the domestic front, the company is expected to launch the Peninsular Puchong residential project in the fourth quarter of this year, or in the first quarter of 2013.

The launch of the project will also depend on market demand as at present, the local property outlook is not so vibrant.

By Bernama