Tuesday, May 25, 2010

Sunway may place 1/5 of Reit IPO to cornerstone investors

(KUALA LUMPUR) Malaysia's Sunway City may place around a fifth of its planned initial public offering of a real estate investment trust (Reit) to cornerstone investors, sources with direct knowledge of the deal said.

The country's sixth-biggest property firm by market value is in talks with seven local funds in the hopes of getting some of them to become cornerstone investors in the IPO which is expected to raise around US$500 million, the sources said.

The Sunway Reit, with a fund size of 2.78 billion units, is set to become Malaysia's largest when it is listed in the third quarter of this year.

'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.

The sources could not be named because they were not authorised to speak to the media.

Sunway City declined to comment. -- Reuters

Source: Business Times, 25 May 2010

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