Another potential REIT which is likely to come up before end of the year:

• The proposed REIT comprises two shopping malls –Subang Parade and Mahkota Parade. Subang Parade and Mahkota Parade, which have retail space of more than 489,000 square feet and 500,000 square feet respectively.Occupancy currently stands at 98.5 per cent and 95 per cent respectively;

• The REIT is to be listed on the main board of Bursa Malaysia which will worth about RM300 million.The Securities Commission recently has approved the plan.

• The yield will be higher than the 6-7% average yield of recent REITs;

• The owner is the Hektar group and the key person behind Hektar,a retail property group - is chairman and major shareholder Datuk Jaafar Abdul Hamid, formerly of the Renong group.Jaafar had, via Hektar, bought the Subang Parade and Mahkota Parade malls from the Lion group three years ago for RM223.4 million and RM146.6 million, respectively.The Hektar group comprises Hektar Premier Sdn Bhd, Hektar Black Sdn Bhd and Hektar Klasik Sdn Bhd.

  Hektar Premier - in which Jaafar holds a 99.99 per cent stake, with his associate Shahril Kassim holding the balance - owns and manages the Subang Parade mall in Subang Jaya, while Hektar Black does the same for Mahkota Parade, Malacca’s leading retail mall.

  Among his previous roles, Jaafar was also the former managing director of United Engineers (M) Bhd.

• It is believed that Aseambankers will be handling the REIT.

Source: The Edge, Malaysia (22/9/06)

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