Largest REIT listing in Malaysia and Southeast Asia largest IPO 2010YTD

Sunway REIT, the largest REIT in Malaysia and Asia ex-Japan’s largest IPO 2010 YTD was listed on the Bursa Malaysia today with an implied market capitalisation of RM2.41 billion based on the institutional price of RM 0.90 per offer unit and retail price of RM 0.88 per offer unit.

Tan Sri Dato’ Seri Dr Jeffrey Cheah, AO, Founder and Chairman of Sunway City Berhad struck the gong at the Bursa Malaysia to signify the debut of the REIT. Also present at the listing ceremony were Dato Jeffrey Ng, CEO of Sunway REIT Management Sdn Bhd, senior management from Sunway City and Sunway REIT Management Sdn Bhd, Joint Book Runners and other stakeholders.

The initial public offering amounted to a total of 1,654,969,300 new units comprising a retail offer and an institutional offer. A total of 134,005,600 units (approximately 8%) were offered the Malaysian public under the retail offer, while the remaining 1,520,963,700 units (approximately 92%) were offered to Malaysian and foreign investors under the institutional offer.

At the listing, Dato’ Jeffrey Ng, CEO, Sunway REIT Management Sdn Bhd, said that the headway the team managed to garner with investors during the global roadshow was encouraging.

“Despite the cautious sentiments owing to the perceived volatility of the markets, we had managed to garner much positive attention from both local and global investors. A definite element of appeal is certainly the defensive quality of a real estate investment trust which pays out almost all of its profits as dividends. The Sunway REIT has been particularly well-received as we hold a unique portfolio, comprising eight properties in retail, hospitality and office sectors, effectively buttressing against risks associated with any one industry,” he said.

“The attractiveness of our offering to foreign investors is evident. It is large enough to interest the international community. This fact, supported by the fact that we were able to price the REIT at a discount proves that the quality of the assets, a management with an established track record and the capability of the assets to remain profitable through an unstable market attracted local investors as well. The Sunway REIT provides investors with exposure to the attractive real estate market in Malaysia, in particular the fast growing retail sector.”

Sunway REIT’s current portfolio includes eight properties in the retail, hospitality and office sectors. It has a total combined asset value of RM 3.7 billion, its largest asset being the Sunway Pyramid shopping mall, accounting for 62% of the asset value.

Tan Sri Dato’ Seri Jeffrey Cheah, AO, at the listing said, “We believe that the demand from foreign investors underscores the confidence they have in the future of the Malaysian economy and our capital market, as well as the integrity of the Sunway brand.”