WCT gets nod from SC for Paradigm REIT listing

• The initial property portfolio includes the Bukit Tinggi Shopping Centre, which will be acquired from Gemilang Waras Sdn Bhd, a wholly-owned unit of WCT, for RM680 million, with RM350 million settled in units and RM330 million in cash.

KUALA LUMPUR (March 4): WCT Holdings Bhd (KL:WCT) said it has received regulatory approval from the Securities Commission Malaysia to establish and list Paradigm Real Estate Investment Trust (Paradigm REIT) on the Main Market of Bursa Malaysia.

Paradigm REIT will debut with an initial fund size of 1.6 billion units and a portfolio of three properties valued at RM2.44 billion, said WCT in a bourse filing on Monday.

The acquisition of the properties, it said, will be settled through the issuance of 1.6 billion units at RM1.00 per unit and RM837 million in cash, funded via commercial real estate-backed medium-term notes.

The initial property portfolio includes the Bukit Tinggi Shopping Centre, which will be acquired from Gemilang Waras Sdn Bhd, a wholly-owned unit of WCT, for RM680 million, with RM350 million settled in units and RM330 million in cash.

Paradigm Mall Petaling Jaya, owned by Jelas Puri Sdn Bhd — a 70% joint venture of WCT — will be acquired for RM600 million, with RM230 million in units and RM370 million in cash.

Meanwhile, Paradigm Mall Johor Bahru, owned by WCT Hartanah Jaya Sdn Bhd, another wholly-owned unit of WCT, will be acquired for RM1.16 billion, with RM1.02 billion in units and RM137 million in cash.

The REIT listing will entail an offer of up to 254.66 million units to retail investors, including a non-tradeable restricted offer for sale (ROFS) to WCT shareholders, units for directors and employees, and a public portion, of which half will be reserved for Bumiputera investors.

At least another 305.34 million units will be placed with Malaysian institutional investors and selected investors, including 200 million units earmarked for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti).

The listing remains subject to additional approvals, including from Bursa Malaysia, WCT shareholders and state authorities for property transfers.

Paradigm REIT must also allocate at least 12.5% of its enlarged unit base to Miti-approved Bumiputera investors and submit an operational audit report within six months post-listing.

Maybank Investment Bank Bhd is the principal adviser for the REIT establishment and listing exercise.

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