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Malaysia’s Sunway City may place around 1/5 of its initial public offering of a real estate investment trust (Reit) to cornerstone investors, according to some sources.
The sources said Malaysia’s sixth-biggest property company by market value in Malaysia is still negotiating with local funds in hopes to lure them to become cornerstone investors in the IPO, which is expected to increase to around US$500 million.
With a fund size of 2.78 billion units, the Sunway Reit is set to become the country’s largest when it is listed in Q3 of 2010.
“They are talking to seven funds, which consist of insurance funds, unit trust funds, government-linked investment companies, and a few pension funds,” said one source.