Malaysian property developer Sunway City Bhd has secured four cornerstone investors who will acquire 14 percent of the initial public offering of its Real Estate Investment Trust (REIT) for about $500 million.
According to the company’s draft prospectus, the cornerstone investors includes Singapore’s state investment firm GIC, insurer Great Eastern Life Assurance (Malaysia) Bhd, Malaysia’s largest pension fund EPF and the state investment company Permodalan Nasional Bhd.
These investors will take up to 376 million units at a price lower than the institutional price.
The Sunway REIT, with a 2.78-billion-unit fund size, is set to become Malaysia’s largest REIT when it is listed in the Q3 2010.
It said the company featured 1.65 billion units for public contribution, and 1.5 billion of this is reserved for institutional and selected investors.
According to its prospectus, the issue price will be determined after a book-building process, which will close on 24 June 2010.
The joint bookrunners include CIMB, JP Morgan, Maybank Investment Bank and HSBC, while the joint global coordinators are Credit Suisse and RHB Investment Bank.
Sunway City said it will receive about 1.0 billion units and some 2.7 billion ringgit in cash in the REIT for the eight properties it will insert into the unit.
The properties, which include office towers, hotels and shopping malls, have a combined market value of about 3.7 billion ringgit.
The listing is expected to be on July 8.