Saw bursa announcement, Sunway family members been acquiring SUNREIT in open market, any take on this guys? they signal SUNREIT < RM1.50 a good buy?

Any investors here keen to apply Al-Salam Reits IPO?

maybe they're trying to "fish" people into buying

like u say "below 1.50 a good buy"

Yeah, if below RM1.45 don't mind to bottom fish! Haha

By the way, noted SUNREIT is going to cease payment of manager fees in the form of units w.e.f 2017, it will be fully cash payment thereafter. I read some news stating that the cessation is due to some GST implications, can enlightened me how does GST impact the issuance of units in relation to payment of managers fee?

I'm also not sure about the GST implications thingy

maybe Pinky can help

Found this from its latest annual report

MINIMAL IMPACT OF GST ON REIT
In a broad perspective, the introduction of GST is not expected to have any significant impact on the earnings and operation of Sunway REIT.
Under the GST guidelines, any issuance of new units undertaken by a
REIT will result in the classification of a REIT as a mixed supplier. The
classification will result in GST implications to the REIT. Sunway REIT
alongside with the Malaysian REIT Managers Association (“MRMA”)
are engaging with the relevant authorities pertaining to this with
reference to precedence in the region.

Any idea guys or you hear anything that SUNREIT will maintain 100% payout in FY16? since 100% DPU payout is guided until 2015 only.

Whether pay in cash or in units also will attract GST AFAIK.

Maybe the issuance of additional units is a hassle and will attract ADDITIONAL GST konon, not too sure

Yeah, coz initially will prefer the REIT to receive some in units instead of full cash, will monitor other REIT and see whether other REITs are opting for cash payment as well or not , thanks spider

would love to hear about this one too

As a mixed supplier, input tax is subject to ratio of taxable supplies

Worry open below IPO price?

I think this is more about the management fee by the managing agent.

Eg.
Reit engage management company, which incur 1 mil as management fee.

As in ordinary sense, a 1 mil tax invoice will be issued by the manager to the reit, which need to incur GST.
So total payable by the reit to the manager is 1 mil + 6% GST.

But now, reit substitute it with issuance of new unit instead of payment in cash form.

So in the issuance new unit as payment, GST should be incurred as well, if not (if issuance new unit instead of payment in cash as a form of manager fee), there is a loop hole to "escape" the GST.

Morning Cherroy, your explanation makes perfect sense, my queries are cleared will monitor others REITs as well if they are shifting to cash payments.

Thanks for enlightening, it is clearer to me now the mixed supplier classification does attract tax implication:) thanks wil-i-am

That means...cash or units also attract GST, no difference?

In term of tax perspective, it should be no difference.

But this should not be affecting on shareholders in term of DPU or earning of reit.

...and also future public shareholding spread too, right?

It doesn't have any relationship between GST and public shareholding.

Right issue to raise capital is not subjected to GST.
Just like IPO, there is no GST.

But if you use the new issuance unit as a form of payment, then yes GST still applied.
This is to prevent a loop hole in GST that can be exploited.

If a Reit can't claim 100% of input tax due to mixed suppliers status, the unclaimed portion will b absorb as exp