Sunway Real Estate Investment Trust (Reit) is planning to sell its shares for S$0.38 to $0.42 (90-98 sen) in an IPO in Malaysia, a sale document showed.
The firm, which is managed by property and hotel company Sunway City Bhd, started offering the shares as it plans to raise US$515 million in what would be the biggest Reit IPO in Malaysia, according to the document. A group of banks led by RHB Capital Bhd and Credit Suisse Group AG managed the sale.
The property trust in Malaysia, which includes malls and hotels worth RM3.7 billion, is poised to be the biggest in the Southeast Asian region, as it attracts more investors for real estate stocks amidst an economic rebound from the recession last year.
According to the term sheet, the funds will be used for acquiring properties. Sunway will announce the final price of the shares on June 25 and it will start trading in Malaysia on July 8.