KUALA LUMPUR: The first-ever Islamic stapled real estate investment trust (REIT) structure listed yesterday on the Main Board of Bursa Malaysia by KLCC Property Holdings Bhd (KLCCP), debuted at a 20 sen premium over KLCCP’s last share price prior to trading suspension of RM7.25 per share.
At the opening bell, some 2,900 shares of the security known as the KLCCP Stapled Group, exchanged hands.
KLCCP chief executive officer Hashim Wahir said the company’s shareholders would now own shares and units in KLCCP and the newly established KLCC REIT respectively, which would be quoted and traded as one security known as the KLCCP Stapled Group.
The restructuring exercise has also allowed the Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil to be housed under KLCC REIT with remaining assets including Suria KLCC, Menara Dayabumi and Mandarin Oriental Hotel remaining in KLCCP.
“We are open to talk on the assets that are currently under us to be injected into the REIT, as well,” he told reporters after the listing ceremony here yesterday.
A stapled security is where investors own two or more securities which are generally related and bound together through one vehicle.
Typically, stapled securities consist of one trust unit and one share in the fund management company that cannot be traded separately.
The trust holds the portfolio of assets while the related company carries out the fund management and or development opportunities.
On the establishment of the KLCCP Stapled Group, Hashim said it was expected to create long-term value for shareholders who were expected to benefit from the significant valuation uplift and increased distributions.
“The group has property assets in excess of RM15 billion, making it more than three times as large as the next listed REIT vehicle.
“The establishment of KLCCP Stapled Group will allow shareholders to simultaneously enjoy growth potential from existing and new developments as well as stable cash flows from stabilised prime properties held via the REIT,” he added.
Hashim also said the KLCCP Stapled Group would have a conservative capital structure with debt headroom to fund future organic and inorganic growth. — Bernama