Three banks underwrite the entire retail portion of Main Market-bound Paradigm REIT

• Paradigm REIT is set to be listed with 1.6 billion units, including a retail and institutional offering of 560 million units.

KUALA LUMPUR (April 21): Maybank Investment Bank, CGS International and AmInvestment Bank will jointly underwrite the entire retail portion of Paradigm Real Estate Investment Trust’s (REIT) initial public offering, covering up to 254.66 million units as it prepares to list on the Main Market.

Paradigm REIT is set to be listed with 1.6 billion units, including a retail and institutional offering of 560 million units.

This consists of up to 254.66 million units for retail investors and at least 305.34 million units for institutions.

Under the underwriting agreement, Maybank is the main adviser, sole managing underwriter and lead bookrunner for the IPO. It will also work with CGS International and AmInvestment Bank as joint underwriters and bookrunners.

"The underwriting agreement formalises our next step toward a successful listing.

"With the endorsement from shareholders of WCT Holdings Bhd (KL:WCT) and the support of our advisors and joint underwriters, Paradigm REIT is well-positioned to offer both institutional and retail investors a value investment proposition,” said Paradigm REIT manager Paradigm REIT Management Sdn Bhd chief executive officer, Selena Chua Kah Noi in a statement on Monday.

Paradigm REIT will be backed by three key assets: Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru. These properties, valued at RM2.44 billion, will be acquired through a combination of 1.6 billion REIT units issued at RM1 each and RM837 million in cash.

It will also receive a right of first refusal from sponsor WCT Holdings Bhd to buy future properties in Malaysia developed or owned by WCT for retail, commercial, industrial or hospitality use. This gives Paradigm REIT priority access to future property deals and will help grow its asset pipeline.

Paradigm REIT’s investment policy includes both direct and indirect investments in income-generating properties across sectors like retail, commercial, office, industrial, hospitality and some non-property assets.

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