Reported In The Star (26/7/06)
“PUBLIC trustee Amanah Raya Bhd (ARB) will make an entry into the real estate investment trust (REIT) market by issuing a combination of conventional and Islamic funds worth approximately RM1 billion in the third quarter of this year.
The company will introduce its conventional REIT worth RM500 million first, followed by its Islamic scheme before the year-end

ARB general manager for corporate services, Sudirman Masduki, said:

• the company has identified several properties for the two schemes, comprising mainly hotels, warehouses and commercial buildings;
• The REIT scheme is give  a yield of 7 per cent a year;
• The REIT properties owned by ARB are located mainly in the Klang Valley. The other properties are in the north and south of Peninsular Malaysia as well as the east coast;
• The REIT have  sale and leaseback arrangement with its tenants;
• ARB’s move into the property business is in line with its diversification strategy to further enhance its revenue stream which the current income is mainly from fee-based income of its fund management business, trustee services, legacy management, will-writing and custodianship services.

[ARB, wholly owned by the Finance Ministry, handles RM4.4 billion worth of funds that are invested in the property sector (20 per cent), equity (10 per cent) and fixed income (70 per cent). The company also said it plans to launch a RM1 billion trust fund next month.]
     

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