Malaysia's KLCC Property Holdings Bhd (5089.KU), which is partly owned by state-run oil and gas company Petronas Nasional Bhd, is seeking to raise as much as US$1 billion via a listing of a real estate investment trust, people familiar with the deal said.

Petronas has invited various local and international banks to submit their proposals for the REIT that will be based on KLCC Property's assets, which include the 88-storey Petronas Twin Towers, one of the world's tallest buildings, Suria KLCC shopping mall, Mandarin Oriental hotel and office buildings in Kuala Lumpur's central business district.

KLCC Property Holdings Bhd could list the REIT in a dual Malaysia-Singapore listing or list it in Malaysia only the source told. Malaysian brokerage and bank Maybank said KLCC Property was likely to inject its mature assets into the REIT first, and properties it is developing later on to ensure earnings stability.

This post has been edited by davinz18: Nov 29 2012, 03:06 PM

When is the target date?

This post has been edited by zitis: Aug 15 2012, 11:52 PM

I'm not sure when, most likely year end or 1Q 2013

Is it good if we buy now before the reit?

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Added on August 27, 2012, 12:03 pm
jumped 15c to RM5.80 already. (above NTA)

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Added on October 4, 2012, 7:53 pmguess the reiting is getting closer...jumped 29c today to closed at RM6.19

This post has been edited by asambuffett: Oct 4 2012, 07:53 PM

KLCC Property Holdings Bhd (KLCCP) on Tuesday, Nov 27 satisfied
market expectations by announcing plans for a real estate investment
trust (REIT), five months after saying it might do so to boost shareholder
returns.
Its decision to have a “stapled REIT” or two-in-one structure, however,
only met market hopes halfway as most analysts had expected a pure
or standalone REIT.
A standalone REIT would be free of what analysts call a “holding
company” discount — something that KLCCP’s “stapled REIT” structure
would still face but to a lesser extent than now.
Yet looking from KLCCP’s perspective, the market shouldn’t be entirely surprised with the board’s decision.
By having the REIT stapled to KLCCP as a single entity, the new KLCCP skirts the possibility of its shares being sold down in
favour of a spun-off standalone REIT carrying its prized assets.
At the same time, it will also be able to derive tax benefits from a REIT structure and pay out better dividends than it currently
does.
But the trade-off is that being a “half-REIT”, the new KLCCP will not have the full valuations that a standalone-REIT would
have.
This is reflected by several target price cuts on KLCCP by analysts this morning (Nov 28).
For example, UOB Kay Hian Research cut its target price to RM5.65 from RM6.46 while RHB Research Institute reduced to
RM5.92 from RM6.50 apiece.
Both houses retained neutral recommendations on KLCCP, whose shares added 20 sen or 3.6% to rest at RM5.78 at midday
today.
UOB Kay Hian sees RM5.20 as the entry price for current KLCCP, whose listing-status would be assumed by the new
stapled REIT structure on completion of the exercise by June 2013.
On a more positive note, analysts are pleased with the stapled REIT having 100% of the iconic Petronas Twin Towers office
blocks — up from just a 50.5% stake currently — by issuing new KLCCP shares at RM5.60 apiece to its controlling
shareholder, Petroliam Nasional Bhd (Petronas).
And while the exclusion of the Suria KLCC retail mall from the proposed stapled REIT structure is another disappointment to
analysts, there’s the promise of more value being unlocked in future as the mall could still be shifted from the holding
company into the stapled REIT to gain tax benefits.
UOB Kay Hian, for instance, sees the injection of currently 60%-owned Suria KLCC and 100%-owned Menara Dayabumi into
the stapled REIT as a possible future share price catalyst for KLCCP.
Expectations are that the injection of Suria KLCC would happen should it be able to buy out minorities.
Other assets with KLCCP that are not included in the REIT include the 75%-owned Mandarin Oriental Hotel and 33%-owned
Menara Maxis office tower, which sit next to the Petronas Twin Towers. Petronas also owns other assets in the Twin Towers’
vicinity like the KLCC Convention Centre.
Whether any asset injection actually happens in future, the other interesting matter to ponder over is that Petronas would see
its stake in KLCCP rise to 75.5% from 52.6% after the exercise.
While KLCCP intends to seek Bursa Malaysia’s approval to accept less than 25% free float for its shares, Petronas would
have the flexibility to sell some of its shares to other investors.
With the stapled REIT structure assuming the listing-status of KLCCP on completion of the proposed exercise, an offer for
sale by Petronas — should it happen — could provide Malaysia another high-profile mega capital-raising exercise next year.

Looks like they didn't include Suria KLCC in the REIT..

a "half reit"

WSJA(12/5) Malaysia Staples A Higher Yield



(From THE WALL STREET JOURNAL ASIA)
By Jason Ng
KLCC Property Holdings Bhd., owner of the 88-story Petronas Twin Towers in Kuala Lumpur, plans to create Malaysia's first stapled real-estate investment trust, a move analysts say will cut the government-backed property firm's tax bill and could double the dividend yield it now offers investors.

Stapled securities are widely popular in Australia and are gaining traction in Singapore and Hong Kong.

Analysts say the structure -- in this case, a traditional REIT called KLCC REIT and a second company that would develop other real-estate projects that could later be injected into the trust -- will help KLCC Property Holdings command a higher valuation by removing the so-called holding-company discount typically attached to a company with multiple listed subsidiaries.

"We prefer the stapled securities structure compared to [a standalone] REIT, as it mitigates holding-company discount, generates tax savings and unlocks asset value with minimal value destruction," said Jonathan Lai, an analyst with UOB KayHian.

KLCC Property, 31.7% owned by state-owned oil firm Petroliam Nasional Bhd., or Petronas, is already listed on the stock exchange in Kuala Lumpur. It said late last month that it plans to restructure itself into a REIT that will comprise the Petronas Twin Towers and two other office buildings in the capital. The assets are worth about 15 billion ringgit ($4.93 billion).

KLCC Property would still own the Suria KLCC shopping complex, the Mandarin Oriental hotel and another office building that is being renovated.

Analysts say all could potentially become part of KLCC REIT at some point.

Once the restructuring is completed, which is expected by the end of the second quarter of 2013, both KLCC Property and KLCC REIT will be bound together and trade as a single stock on the Malaysian stock exchange.

If KLCC REIT pays out at least 90% of its income as dividends, as it says it plans to do, it won't have to pay tax under Malaysian law. A Malaysian property firm that isn't structured as a REIT pays 25% of earnings in tax. Mr. Lai said he expects KLCC could cut its tax bill by as much as 39% by becoming a REIT.

In turn, the dividend yield for investors would double to around 6%, compared with 3% currently for just KLCC Property.

"Stapled securities essentially function like a REIT, so yield-seeking investors would definitely look at it," said David Ng, who manages more than 16 billion ringgit in assets as chief investment officer of Hwang Investment Management Bhd. His firm owns shares in KLCC Property.

Earnings from the three assets bound to the KLCC REIT are expected to be resilient: Petronas recently signed 15-year leases for office space in the twin towers and the adjacent office tower, and U.S.-based oil major Exxon Mobil's companies in Malaysia also are KLCC tenants.

But for investors, apart from yield, the staple structure offers the allure of possible asset injections.

"The beauty of a stapled securities structure is that there is no restriction in moving assets from KLCC Property to KLCC REIT once management deems these assets to be mature enough," said Foong Wai Mun, an analyst with CIMB Investment Bank.

He raised his target price for KLCC Property to 6.64 ringgit from 5.47 ringgit because of the REIT plans. The shares closed Tuesday at 6.06 ringgit.

http://biz.thestar.com.my/news/story.asp?f...11&sec=business

Will be in April

It was stapled with KLCCP.
Restructure and becoming a new reit now?

So now it will be a new reit that we have to buy in ala sunreit or stapled with KLCCP?

anyone calculate/know the yield?

Morning Everyone,


I do my calc after wakeup in the morning ....juz for sharing for every one. The Infor i grab from KLCCP CIMB 20130222 and KLCCP Maybank 20130214.

Pls coment my calc, if i do any wrong calc.



This post has been edited by felixmask: Mar 3 2013, 10:37 AM


Attached File(s)
 KLCCP_CIMB_20130222.pdf ( 885.26k ) Number of downloads: 128
 KLCCP_MABANK_20130214_MIB_3198.pdf ( 612.23k ) Number of downloads: 85

Thanks Felix~

dont so fast thanks me,when i look carefully IB report mention the yield different from mine calc.

I still need sifu to comment IB TP.

Happy reading

This post has been edited by felixmask: Mar 3 2013, 08:39 PM

Err so ipo process will happen?

So will there be an IPO or will it be the case of kassets and IGBreit?

KLCCP dont hv IPO reits, but embeded as KLCCP Staple


Attached File(s)
 KLCCP_Press_Release__REIT_.pdf ( 48.16k ) Number of downloads: 143

hmm..... so if i own KLCCP 1,000 units, i'll get another 1,000 units of KLCC REIT (1 on 1 basis)? but trade in single listed security? how to determine the pricing?

It juz financial accouting formality - KLCCSR intends to pay out at least 90% of its distributable income from both KLCC REIT(example PTT)
and the non-REIT KLCCP on a consolidated basis.


In other words - is traded at KLCCP pricing.

you can refer below reports.


Attached File(s)
 maybank_M_REIT_20121220_MIB_2685.pdf ( 616.58k ) Number of downloads: 252