WCT gets shareholders’ nod for Paradigm REIT listing

• As part of the proposed listing of Paradigm REIT, shareholders also approved the proposed disposal of three prime retail properties — Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ) and Paradigm Mall Johor Bahru (PMJB) — to Paradigm REIT for RM2.44 billion.

KUALA LUMPUR (April 9): WCT Holdings Bhd (KL:WCT) said its shareholders have approved the proposal to list the Paradigm Real Estate Investment Trust (Paradigm REIT) on the Bursa Malaysia Main Market at Wednesday’s extraordinary general meeting (EGM).

As part of the proposed listing of Paradigm REIT, shareholders also approved the proposed disposal of three prime retail properties — Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ) and Paradigm Mall Johor Bahru (PMJB) — to Paradigm REIT for RM2.44 billion.

This will be settled through the issuance of 1.6 billion units in Paradigm REIT at an issue price of RM1 per unit or RM1.6 billion and a cash consideration of RM837 million, funded via commercial real estate-backed medium-term notes.

According to WCT’s statement, the proposed listing of Paradigm REIT will mark a significant milestone in WCT’s strategic growth plans, enabling the group to unlock the value of its retail assets while optimising its capital structure.

Further, the proposed listing of Paradigm REIT is expected to strengthen WCT’s balance sheet by reducing borrowings while offering investors the opportunity to participate in a diversified portfolio of income-generating retail assets, delivering stable cash distributions and long-term capital appreciation.

"We are grateful for the strong support from our shareholders in approving the proposed listing of Paradigm REIT. This strategic initiative not only unlocks the value of our retail assets but also provides WCT with greater financial flexibility to pursue new growth opportunities,” said WCT managing director Datuk Lee Tuck Fook.

“We are confident that Paradigm REIT will be a valuable addition to the Bursa Securities Main Market and deliver sustainable returns to our investors,” he said. This also reinforces WCT’s commitment to creating long-term value for stakeholders while solidifying its presence in Malaysia’s real estate investment sector, Lee added.

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.

During the EGM, shareholders also approved the offering of 560 million units in Paradigm REIT by WCT, a company involved in engineering and construction, property development, and the investment and management of retail malls and hotels.

This includes a retail offering of up to 254.66 million units for entitled shareholders of WCT, eligible directors and employees of the group, Paradigm REIT Management Sdn Bhd (the management company of Paradigm REIT) and the Malaysian public.

From the proposed retail offering, 194.86 million units will be available to entitled shareholders of WCT on the basis of one offer unit for every eight existing ordinary shares of WCT held, as of the entitlement date to be determined and announced later by WCT.

The proposed offering also includes an institutional offering of at least 305.34 million units, with 200 million units reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry of Malaysia, and at least 105.34 million units allocated to other institutional and selected investors.

Shares in WCT closed three sen or 5.04% lower at 56.5 sen on Wednesday, giving the group a market capitalisation of RM927.6 million.

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