PETALING JAYA: WCT Holdings Bhd
’s proposed real estate investment trust (REIT), which will comprise three assets with a combined asset value of RM2.4bil will aid in degearing the group’s balance sheet.
Kenanga Research said the valuation exceeds its previous assumption of RM1.02il, prompting an upgrade to its target price (TP) for WCT by 22% to RM1.43 a share from RM1.17.
“We are positive on this REIT listing as it marks the start of a re-rating exercise. The next focus should be on its property development segment, supported by a stronger balance sheet post the REIT listing,” the research firm said in a report.
Last Wednesday, WCT confirmed plans to monetise its three retail properties assets namely Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya and Paradigm Mall Johor Bahru for a total valuation of RM2.44il into a newly established REIT called Paradigm-REIT.
Paradigm-REIT will fund the asset injections by issuing 1.6bil new units at an assumed price of RM1 a unit and a cash payment of RM837mil.
The REIT will be listed on the Main Market of Bursa Malaysia and this is expected to be completed in the first quarter of financial year 2025.
