Paradigm REIT has three hotels and one commercial gateway on its acquisition radar
KUALA LUMPUR: Paradigm Real Estate Investment Trust (Paradigm REIT) has three hotels and a commercial gateway in its acquisition pipeline for the next three years.
The assets are Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya, Premier Hotel Klang and Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2.
Paradigm REIT Management Sdn Bhd's investment, finance and accounts director, Chong Kian Fah, told reporters after the company's listing on the Main Market of Bursa Malaysia today that the proposed acquisition would be funded with a 50:50 combination of cash and newly issued REIT units.
'We plan to raise the cash portion through medium-term notes. Our proposal is to pay the vendor half in cash and half in new REIT units,' he said.
The hotels, which are currently owned by Paradigm REIT's sponsor, WCT Holdings Bhd, are in the vicinity of its mall assets in the trust.
Paradigm REIT is looking to do this as early as 2026 to inject the three hotels and then potentially 2027 or 2028 for the commercial gateway asset which the company is looking into besides eyeing other potential acquisition targets.
Asked if there are any plans to acquire new malls following the listing, Paradigm REIT executive director and CEO Selena Chua Kah Noi said the company is open to it but it would depend on several key factors.
'We have to look at a few key things, including location, type of tenants, the mall surrounding, catchment and other factors,' she added.
Chua said the company is looking to leverage on Visit Malaysia 2026 and is working closely with Tourism Malaysia on the programme.
She said Paradigm Mall Johor will benefit the most out of the programme as many Singaporeans will be excited to come visit the country and spend their time shopping. 'Last year, we did a midnight sale in Johor Bahru which was very well received and the tourists from Singapore came in and shopped and we had a lot of activities lined up.'
Paradigm REIT made a flat debut on Bursa Malaysia, opening at RM1 per share, unchanged from its initial public offering (IPO) price, on volume of 1.73 million units. It traded within a narrow range and closed at RM1, with 44.58 million shares traded.
In May, Paradigm REIT's IPO garnered strong investor interest, with the public tranche oversubscribed by 1.49 times. The non-Bumiputera portion saw an oversubscription rate of 3.7 times.
Paradigm REIT's IPO involved no issuance of new units, meaning the trust itself did not receive any proceeds. The entire RM560 million raised from the IPO went to WCT Holdings.
Paradigm REIT chairman and independent non-executive director Tan Sri Shahril Ridza Ridzuan said the listing of Paradigm REIT marks a proud milestone for their team and for Malaysia's REIT landscape.
'While we opened flat at RM1, we view this as a stable and encouraging start – especially in a market where volatility has become the norm.
'The strong support from both institutional and retail investors affirms confidence in our portfolio and long-term strategy. We remain focused on delivering consistent value to our unit holders and executing our strategy in making our assets more value-accretive.'
Paradigm REIT's current portfolio comprises three shopping centres – Paradigm Mall Petaling Jaya, Paradigm Mall Johor Bahru, and Bukit Tinggi Shopping Centre – collectively valued at RM2.4 billion and strategically located in high-traffic, high-growth urban areas.
Managed by Paradigm REIT Management and sponsored by WCT Holdings, Paradigm REIT aims to maintain a disciplined acquisition strategy while leveraging on WCT Holdings' development expertise and network to unlock future growth opportunities.
Paradigm REIT is expected to deliver an attractive distribution yield, backed by stable cash flows from its diversified and well-tenanted retail assets. It has committed to distributing at least 90% of its distributable income on a half-yearly basis.
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