Boustead Holdings Bhd’s Al-Hadharah Boustead ‘s REIT To raise RM229.7mil

Further to the earlier article on Malaysia & World first Islamic plantation Boutstead’s REIT, the following are the updates (The Star 16/1/07):- 

• launch of the prospectus was undertaken on Jan 15; 

• slated for listing on Feb 8 2007 

• Boustead REIT Managers Sdn Bhd, a subsidiary of Lembaga Tabung Angkatan Tentera, will manage this REIT; 

• REIT expected to raise RM229.7mil; 

• at least 98% of its earnings to be paid to unitholders in the first three financial years; able to declare a dividend distribution of at least 7.38 sen per year for the next three years; 

• involves the sale of eight oil palm estates and two palm oil mills in Peninsular Malaysia valued at RM472mil to a fund set up by Boustead and Boustead Properties Bhd; 

• involves 220 million new units of which 198 million units are for institutional and selected investors at RM1.05 per unit, 20 million units for public subscription and 2 million to directors and employees of the company, both at 99 sen per unit; 

• REIT’s chairman is Tan Sri Lodin Wok Kamaruddin who is also the group managing director of Boustead; 

For Boustead group:- 

• With the establishment of the REIT, its gearing is reduced to 1.02 times from the current 1.14 times; 

• Incidentally, the group’s total plantation portfolio was currently in excess of RM1bil in value; and 

• There is a planned second phase injection of plantation assets to enhance the prospects of the REIT is scheduled within six months;