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?

---

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

---

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

Quite a good summury of reit in last page of attached report

Thanks Felix, a good view on all established REIT...

KLCCP Audit Financial & EGM Notice


Attached File(s)
 KLCCP_AFS_31.12.2012.pdf ( 415.33k ) Number of downloads: 56
 klcc_notice_of_EGM.pdf ( 173.94k ) Number of downloads: 44

6.8x ... . guess i will keep this giant as my REIT counter

Its not a good time to enter now rite?

This post has been edited by hyzam1212: Mar 16 2013, 11:23 AM

HI hyzam1212,

Prev i posted about KLCCP yield.
Pls comment and analysis.




Attached thumbnail(s)

sorry felix, after seeing ur analysis I think u r more well-versed than me in term of comparing the Reits, yield, growth etc...Honestly I treat Reits as a normal shares and interested to buy below price if there is any...KLCCP is interesting due to the so called Stapled Reit which in my opinion can bring u higher yield in the future due to the stability and new acquisations but the main thing for me is the entry price....if the entry price is ok than i will consider to hold it longer in order to appreciate the capital appreciation...cheers

for archive purposes...
RM900m facelift for Kompleks Dayabumi

if u have 10,000 existing shares of KLCCP, u will be given an additional 10,000 units of KLCC REIT

But, both the 10,000 KLCCP shares and 10,000 units of KLCC REIT will be stapled together, meaning that if u sell one, u sell the other too.

if dividend declared (i.e 30 sen), it will be distributed to both KLCCP share and KLCC Reit

hi buffett_Investor,

You sai lang 10,000 KLCCP ?

forecast dividend is 30 sen per anum. Distrubution will decalre every quarter.

no lah. i still keep my winning stocks, extra put some into KLCCP

I don't understand what that mean. Please explain some more?
I thought this 30 sen is for the stabled KLCCP stock as a whole.

Does this mean that if I wan KLCC stapled reit, I need to own KLCCP share first? what is the price now?

yes. 6.67

Will it have formula like KASSET last time (some refund) after listed??

What?! So in order for me in own KLCC REIT, I must own KLCCP share? Yikes!

No refund and no delist.

This post has been edited by felixmask: Apr 3 2013, 10:52 AM

Correct.

I can't figure out how are they planning to implement though. Some of the public may not be aware of it, and apply for the IPO.

Let's say they successfully gotten the IPO, but without holding KLCPP shares, transaction will not go through? Hmm

Morning TakoC,

Where you got the IPO source?
you can read at KLCCP announcement or previous posted at KLCCP reits topic or Reits V4 topic.
KLCCP forecast DPU 2013 is 30sen per anum.

This post has been edited by felixmask: Apr 3 2013, 11:29 AM

RM12b KLCCP Reit to be listed early May

KUALA LUMPUR (April 8): The long anticipated listing of Malaysia's
largest real estate investment trust (REIT) is expected to hit Bursa
Malaysia by early May, according to KLCC Property Holding's Bhd
(KLCCP) chief executive officer Hashim bin Wahir.
KLCCP shareholders gave the greenlight for the creation of Malaysia's
first ever stapled REIT, KLCC Stapled Group, at an extraordinary
general meeting today.
"We expect the entire restructuring and listing of the stapled securities
to be completed by early May. Based on last Friday's closing price, the
new entity will have a market capitalisation of around RM12 billion,
making it Malaysia's largest REIT," Hashim told reporters at a press
conference today.

So now basically they will be delisted and relist? It will not be cheap I guess

Not sure it would be same as IGB REIT IPO price....

5089 KLCCP KLCC PROPERTY HOLDINGS BHD
Bonus Issue 1 : 1

Entitlement Details:
Bonus issue of 1,805,333,083 Class A Redeemable Preference Shares of RM0.01
each in KLCC Property Holdings Berhad (KLCCP or Company) (RPS) to the entitled
shareholders of the Company (Entitled Shareholders) on the basis of one RPS for
each ordinary share of RM1.00 each in KLCCP (Share), held on the Entitlement
Date (Bonus RPS Issue)


Entitlement Type: Others
Entitlement Date and Time: 29/04/2013 05:00 PM
Year Ending/Period Ending/Ended Date:
EX Date: 25/04/2013
To SCANS Date:
Payment Date:
Interest Payment Period:
Rights Issue Price: 0.000
Trading of Rights Start On:
Trading of Rights End On:
Stock Par Value:

Share transfer book & register of members will be closed from to (both dates inclusive) for the purpose of determining the entitlements

A Depositor shall qualify for the entitlement in respect of:
- Securities transferred into the Depositor's Securities Account before 29/04/2013 04:00 PM in respect of ordinary transfers.
- Securities transferred into the Depositor's Securities Account before in respect of express transfers.
- Securities deposited into the Depositor's Securities Account before in respect of securities exempted from mandatory deposit.
- Securities not withdrawn from the Depositor's Securities Account as at .
- Securities bought on KLSE on a cum entitlement basis according to the Rules of the KLSE.

Registrar's Name and Contact:
Tricor Investor Services Sdn Bhd
Level 17, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur
Tel: 03-2264 3883


Remarks:
You are advised to read the full contents of the announcement or attachment at
http://www.bursamalaysia.com.


Submitted By:
SHERYL WONG

dont think there will be any public IPO...

they will just issue bonus. price adjusted may be around 3-4 ringgit.

so is it worth if we buy KLCCP share which is 7.00++ now???

Even it is guarantee 1 share KLCCP to 1 share KLCC REIT, after price adjusted to 3.00-4.00; will be loosing 2.00-3.00...

If it is no public IPO, what is expected KLCC REIT price after listing on 1st day?? Won't be like starting >RM 2.00, motsly RM1.00-1.50 ?? Am I right??

why loosing? i dont understand

7.00 x 10,000 units = 70,000

adjusted

3.50 x 20,000 units = 70,000

in term of value, it is still the same.

This post has been edited by buffett_Investor: Apr 12 2013, 10:36 AM

price may move up or down after bonus share. this we cannot control. dividend is roughly 30 cents for this year.

so this mean KLCC stapled REIT will open as >=RM 3.50 on 1st day listing??

morning,

Attach the KLCCP notice.

"Our Company will subsequently undertake the RPS Redemption whereby the RPS will be
redeemed at the redemption price approximating RM4.00 for every one RPS held. The
redemption of the RPS shall be fully satisfied in the f orm of U nits. This will r esult in a
distribution of 1,805,333,083 Units to our Entitled Shareholders."

Any one want to share the meaning ?


Attached File(s)
 KLCC_Property_Holdings_Berhad_Notice__Bursa__20130412.pdf ( 695.72k ) Number of downloads: 23

huh.... then 8.00 KLCCP

so fast 8.00 klccp.

1:1 for 4 ringgit..that would mean 8.00 ringgit before the exdate

sharing m-reits report from Am


Attached File(s)
 M_REIT_20130412_Am.pdf ( 193.25k ) Number of downloads: 59

May I know what exactly is this mean?
Is that means future KLCCP+KLCCP Reit price will be RM4.00
and if currently we hold 100 shares of KLCCP, future we will get 200 shares and trading at about RM4.00?

yes i would think so. the risk is that, during the day of listing Staple REIT, it may be traded below or above 4.00

the new REIT will be credited to your normal CDS

This post has been edited by buffett_Investor: Apr 12 2013, 03:44 PM

Will not be credited to our CDS? But I read this:

Our Company will credit the new Stapled Securities directly into your CDS account(s) where
your Shares had been previously deposited. Subsequently, our Company will despatch a
notice of allotment to you at your address registered with Bursa Depository or in accordance
with our Record of Depositors of our Company by ordinary post at your own risk before the
listing of the Stapled Securities on the Main Market pursuant to the Listing. The Stapled
Securities can be traded once they are listed on the Main Market.

sorry for the mistake

do you reckon the price will shoot up to rm8 on monday?
i'm interested in buying some shares, but still cant decide whether to buy now or wait...

it will not be on monday...it has to be before the ex-date, which 25 april 2013

hmm.. then i should buy some before it shoots up.
ive missed the train with BIMB and Mah Sing previously because of wait and see...
but since this stapled reit is backed by 15 year lease with petronas, i dont think GE will have big impact on this counter.

what do you think?

Post election result.Change of gov will/maybe trigger panic selling by foreign fund.
My TP price i want is somewhere rm6 or below.

This post has been edited by felixmask: Apr 12 2013, 07:18 PM

i dont think panic selling by foreign fund will happen here.
the shareholder list doesn't show any significant foreign ownership of this company.
http://www.klcc.com.my/InvestorRelations/D...areholdings.pdf

plus, once its launched as a stapled reit, it'll become the biggest in malaysia (and among asia's biggest).
so, it'll attract more attention from foreign funds to invest.

all the units are currently tenanted and backed by 15 years lease, with 3% rental increase every 3 years.
expected yield for 2013 is 30 sen, which is around 4.2% based on today's price.
i know its a bit lower compared to other reits, but there is also room for capital gains due to its exposure.

well, this is just my 2 cents opinion based on some readings. i need to analyse more about its financial aspect.

pulse check on election:

Chinese vote - i can say 8-9/10 chinese will vote against BN
Indian vote - 7-8/10 will vote for BN, but their vote is negligible since there's no constituency that indian hold majority.
Malay vote - is the most important of all. my sensing said, some are 50-50, some area 60-40 for BN. BN will win if huge turnaround from Malay vote. or PR will become a new government with simple majority if malay voted for them 60-40.

fixed deposit for sabah sarawak... i still see it will contribute to BN.

but it is just my sensing..i could be wrong.

Foreign investor - what's in their mind? The inflow of foreign fund: is it due to status quo of BN government, ; or; new hope for new government? if for current status quo, nothing will happen. if the end mind of foreign investor for new hope and PR lose, it will definitely shake the market temporarily.

Hi Nidz,

thanks fact finding, apologize my remarks.
i got interesting you tube sharing " the last day of lehman brothers", very interest movie before the market panic.
I also pray we dont hv such severe with election result, what ever when anything change ppl panic.
that juz my 2send blow wind. I dont hv crystal report to tell you what happen tomorrow.

haha... no need to apologise, we are all learning here.
i am also worrying about post GE effect. 2008 GE is still fresh in my mind.
took me at least 2 years to breakeven back then (in unit trust investment).
that's why i havent really buy anything since the last 2-3 months, just keep my funds on standby for any opportunity.

too early to say! but I hope it go atleast 10 by 3 years.

when will this happen?

Good morning Nidz,

same to me keep learning and sharing- you can read my sharing and fund supermart v2 today.
Me too pile my cash in FD- else i was thinking to invest in IPO only and bear come.
I have limited MONEY i pile in for cash for stock investment, i planning to move 1/3 to invest to Foreign Currency FD - rate is


Buying stock also i dont use "Sai Lang" but i used 2/3 or 1/3 cash to stock. Remaining 1/3 or 2/3 prepare to average down later if happen.

My TP KLCC i want to enter is rm6 or below . else juz wait or buy other thing. Becoz i dont like capital loss on stock but i rather wait with patient.

I displine myself buy stock to break even my broker fee only -

you wont get below 6 anymore.. most probably around 6.80-6.90 the lowest before the ex-date.

my wet dreamz.....no rush chasing stock.

Thanks buffett_Investor you opinion.

wont go below already unless someone crash to klcc

indeedlah.

bought at RM 6.6, seem late ady.

better than noting.

RM5b mixed commercial development takes shape in KLCC

KUALA LUMPUR, April 22 – Kuala Lumpur City Centre (KLCC) is entering its next phase of development with the construction of a mixed commercial project with a gross development value of RM5 billion.

The project, owned by Cititower Sdn Bhd, will consist of a luxury hotel comprising serviced apartments and residences, a 64-storey Grade A office tower, six-storey retail podium and basement carpark.

Cititower chairman Hashim Wahir said the new development was designed as another iconic landmark for the Kuala Lumpur skyline while complementing the existing prime commercial developments within the KLCC precinct.

“Located at the eastern corner of the KLCC development, this integrated mixed commercial project with a total gross floor area of 3.8 million sq ft, is expected to hype up commercial and recreational activities within the KLCC precinct,” Hashim said at the ground-breaking ceremony for the project here today.

Cititower is a joint-venture company between KLCC (Holdings) Sdn Bhd and Qatari Diar Asia Pacific Ltd.

Hashim, who is also Group Chief Executive Officer of KLCC (Holdings), said the total area for the development was about 1.62 hectares and spanned three plots of land namely Lot 185, Lot 167 and Lot 176.

The mixed commercial development is scheduled for completion by end-2017. – Bernama

was reading this... but the tricky part is to get the value or price of KLCC REIT. Stapled REIT creates more confusion and the company will take advantage of minor investors like us. If you dont understand this, better stay away.

KLCC REAL ESTATE INVESTMENT TRUST - bursa announcement 07/May/2013


http://www.bursamalaysia.com/market/listed...78928075391&786

so listing on klcc stapled reit on 9 May?

No. Stock Code Stock Name Reference Lower Upper

1. 5235SS KLCC 7.25 5.08 36.24



Note that these prices are set for the whole trading day.

The reference price is merely an indicative price for the shares to be traded within the trading limits. The fair value of the shares should be determined by the market forces.

Latest Bursa Release

so opening price should be 5.08 onwards??

5235SS KLCC 7.25 5.08 36.24

Mean wat?

7.25 last closing date
5.08 lower limit price
36.24 upper limit price

This post has been edited by felixmask: May 9 2013, 08:46 AM


Attached thumbnail(s)

wah...so exp...

seeing ppl queue for 7.50

Does this mean that instrument KLCCP (5089) is no longer tradable and KLCC (5235SS) replaces it?

YES

Thanks felix. Funny Bursa didnt make any announcement on the suspend of 5089. or did I miss it?

You miss.

dont understand how klccp works.

so now is it renamed to new counter or?

the KLCC-reit staple togther with KLCCP. u cannot sell REIT without the mother. that means, it will be the same as KLCCP. the only different, you get dividend more than previous stand-alone KLCCP.

example:
div distribution 30 sen.
Current unit KLCC seen in the CDS - 3000 units. Staple REIT 3000 units. 6000 units x 30 sen = 1800

Does this mean if I buy 3000 unit KLCC SS @ 7.50 today, my CDS acct showing 3000 unit
when it come to div distribution, i will get 6000 unit x 30sen = 1800 sen, correct?

yes.

means a better return for the shareholder?