For private placement, what if the issue price per unit was far below market price? E.g. RM 1.00?
That is my concern on private placement as small investors like us will be on the losing end.

I taught they are going to issue new shares at RM1.30, or no?

As far, from several private placement had been issued, like Axreit, the private placement is based on market price average price at time being.

UOA REIT(based on 2009 Annual report ):

Debt to equity ratio:0.42
Gearing ratio:29%

Ehh.. can you explain a bit pls how you got the gearing ratio. Seems different from pg 27 of the annual report and I'd like to know how other investors look at it.

Looks like all these REITs really love related party transactions. I know that the yields are all still good at the moment, but this kind of stuff makes me nervous as a small time investor, like the big players are pulling off a scam behind my back.

Many investors have factored in RPTs , as non events..or acceptable practices.

Next , they would factor in Gearing  as non events.

UOAREIT drop 5 cent.

KUALA LUMPUR, March 12 (Bernama) -- Hektar Asset Management Sdn Bhd, the Manager for Hektar REIT (real estate investment trust, on Friday announced the government has acquired 0.1331 hectares of land from Hektar REIT under the Land Acquisition Act 1960 for the proposed extension of the Kelana Jaya Light Rail Transit Phase Two project in Subang Jaya.

The land forms part of the 4.362 hectares on which the Subang Parade Shopping Centre is located and which belongs to Hektar REIT, the company said in a filing to Bursa Malaysia.

It said the acquired portion was only 3.0 per cent of the land area and affected a part of the outdoor car park area of the building.

Meanwhile, the government recently issued the Notice of Award (Form H) which provided a compensation amount of RM4.155 million.

However, AmTrustee Bhd, the trustee for Hektar REIT, filed an appeal yesterday on the compensation amount.

Under the Land Acquisition Act 1960, 75 per cent of the sum awarded under Form H will be paid to AmTrustee (on behalf of Hektar REIT) within six weeks from the date of service of Form H on AmTrustee, pending the outcome of the appeal.

at first it will reduced the NAV, but the impact will be very small coz the land is just a small tract

but for long run, it is good for subang parade, as the LRT station will be a boost to the property value......

LRT, more people come, rental yield improve, property price improved.

they are all just like the chicken and egg .....

Good deal !   Confirm to stop infront of Subang parade ?

UOA Real Estate Investment Trust (REIT) (5110) is considering buying two office blocks in Kuala Lumpur for RM500 million.

It received an offer from UOA Holdings, a substantial unitholder in UOA REIT, for the sale of Parcel B Menara UOA Bangsar and Wisma UOA Damansara II, priced at RM289 million and RM211 million respectively.

"The board of directors of the manager (UOA Asset Management Sdn Bhd) and OSK Trustees Bhd (trustee) will deliberate on the terms and conditions contained in the offer letters and a further announcement will be made upon completion of the deliberation," UOA REIT said in a statement to Bursa Malaysia Bhd.

Parcel B Menara UOA Bangsar, located in Jalan Bangsar Utama 1, comprises a tower block with 15 levels of office space, three levels of retail podium, six levels of elevated car park and four levels of basement parking.
The newly completed commercial and retail property, which has a 99-year leasehold tenure, is 88.5 per cent occupied.

Wisma UOA Damansara II, located at Changkat Semantan, comprises a 16-storey office building and five levels of basement parking.

The two-year-old freehold property, used for commercial and retail purposes, is 87 per cent occupied.

The purchase of Parcel B, Menara UOA Bangsar, will involve a refundable deposit of 0.01 per cent, or RM28,900; a cash payment of RM156.03 million; and the issuance of 102.26 million new REIT units.

The purchase of Wisma UOA Damansara II will also involve a refundable deposit of 0.01 per cent, or RM21,100; a cash payment of RM113.92 million; and the issuance of 74.66 million new REIT units.

at first it will reduced the NAV, but the impact will be very small coz the land is just a small tract

but for long run, it is good for subang parade, as the LRT station will be a boost to the property value......

LRT, more people come, rental yield improve, property price improved.

they are all just like the chicken and egg .....

They are just using the land to build the track, but it is not confirmed that there will be a station where Subang Parade is. Besides, there is already a KTM station nearby, so even if the LRT were to stopover at that vicinity, it would not boost the visitor count a lot as KTM has wider reach than LRT.

Yes I agree with you , the benefits could outweigh  the small potential loss.

Ya, probably bargaining for a station than for a better compensation . Logically it has to one ( Station ) , otherwise there is no way for people to embark, just a bypass. Normally,  a bypass line could be built  just above the road ( on the divider ) . More cost effective. { Added : Planned > Subang Parade could be a Connecting Station as per website attached below }

It is quite proven  that LRT does have some great impact on the businesses .

One area I could think of is Kenanga in KL.

Many smaller retailers are taking LRT to buy goods from the wholesalers. parking is a big problem there, not counting the time wasted.

The rentals there could be as high as rm 20,000 a month, and rental deposits could exceed 6 months to a year.
There could be other factors that I may not be aware of.

The other point is about Publicity . If Harta could put up some forms of info in its building to create some awareness of their REITS, it might help.

If TM could spend a couple of few hundred millions to associate with MU, why can't  Harta educate the public about its REIT ? The flow of human traffic is pretty  high as I could foresee.

Likes the Chinese saying "  if food can be eaten, do not waste."

Just my thought.

i remember reading from newspaper that subang parade is one of the stop. i may be wrong, anybody can confirm on this ?

i am not sure how u do ur comparative analysis between KTM komuter and LRT.

definately LRT (the putra line) will be far better than KTM in term of ridership, frequency, ease of commuting.

KTM komuter may reach a longer distance but in term of station stop, LRT is more strategic and it is far more easier for the mass.

If the station is build with direct assess to subang parade, than it can lure the people along the putra line in the vicinity to visit subang parade. bear in mind this line will be extended to puchong and further south.

So subang parade will hv another big group of people visiting on top of the current middle upper class from the subang area.

They are just using the land to build the track, but it is not confirmed that there will be a station where Subang Parade is. Besides, there is already a KTM station nearby, so even if the LRT were to stopover at that vicinity, it would not boost the visitor count a lot as KTM has wider reach than LRT.