Latest news with #ParadigmReit
New Straits Times
2 days ago
- Business
- New Straits Times
CGS Malaysia supports WCT's RM560mil listing of Paradigm Reit
KUALA LUMPUR: CGS International Securities Malaysia says it has completed its role as joint bookrunner and underwriter for Paradigm Real Estate Investment Trust's RM560 million initial public offering (IPO). Paradigm Reit's IPO, in conjuction with its listing on the Main Market of Bursa Malaysia, raised RM560 million in gross proceeds for its sponsor WCT Holdings Bhd. This marks the largest Malaysian Reit IPO in over a decade and represents one of the largest listings on the local bourse so far this year, CGS Malaysia said. The company said the IPO's 560 million units on offer were priced at RM1.00 per unit with an indicative distribution yield of 7.16 per cent in 2025. "Paradigm Reit saw positive institutional demand, with the full subscription of the institutional tranche of 426.59 million units, including reallocated units from the retail portion, amid challenging market conditions. "The completion of Paradigm Reit's IPO highlights the enduring quality of its RM2.4 billion portfolio of retail assets across key population centres in West Malaysia," it said. The assets are Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya and Paradigm Mall Johor Bahru. "The Reit's portfolio boasts full or near-full occupancy and a diversified tenant mix, combined with WCT's backing as its sponsor, serves as a solid foundation for the Reit's long-term performance," said Alan Inn, deputy chief executive officer of CGS Malaysia. "The success of Paradigm Reit's IPO underscores the resilience and depth of Malaysia's equity capital markets, and reaffirms our commitment to supporting corporate development and fundraising initiatives in Malaysia," he added.
New Straits Times
3 days ago
- Business
- New Straits Times
Paradigm Reit eyeing three hotels, KLIA gateway
KUALA LUMPUR: Paradigm Real Estate Investment Trust (Paradigm Reit), a local real estate investment trust, plans to acquire three hotels and a commercial gateway over the next three years. The assets are the Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya, Premier Hotel Klang, and the Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2. Paradigm Reit Management Sdn Bhd's Investment, Finance and Accounts director, Chong Kian Fah said the proposed acquisition would be funded through a 50:50 combination of cash and newly issued Reit units. "We plan to raise the cash portion through medium-term notes (MTNs). Our proposal is to pay the vendor half in cash and half in new Reit units," he said at a press conference following Paradigm Reit's listing ceremony today. Previously, it was reported that the unit trust aims to acquire the three hotels in 2026, and the commercial gateway in 2027 or 2028. The unit trust, which debuted on the Main Market today, opened unchanged from its initial public offering (IPO) price of RM1.00, with 1.73 million shares traded. Meanwhile, in terms of expansion, its executive director and chief executive officer, Chuah Kah Noi said that as the largest Reit presence in Johor Bahru, the team is also looking to acquire more assets in the state, focusing on those that are yield-accretive. She believes that Paradigm Reit is well-positioned to maintain a stable outlook, given the current sales and occupancy levels across its portfolio of assets. "For most shopping malls, what is critical is sales. The more sales you drive to your tenants, the more profitable they will be, and the more likely they are to stay. "Occupancy across our entire portfolio is quite strong. Our asset in Johor Bahru is about 99.3 per cent, in Petaling Jaya it is close to 98 per cent, and Bukit Tinggi Shopping Centre is fully leased at 100 per cent," she said. She added that Paradigm Mall in Johor Bahru as well as Paradigm Mall in Petaling Jaya are expected to continue performing well into next year, benefiting from the Visit Malaysia 2026 campaign and the close collaboration with the Ministry of Tourism, Arts and Culture Malaysia.
