No REIT plans, says GuocoLand

Property developer GuocoLand Ltd said it currently has no plans to launch a real estate investment trust (REIT).

GuocoLand, led by Malaysian tycoon Quek Leng Chan, made the statement in response to an article in the Business Times newspaper which said the developer was planning to start two REITs that would hold assets of between S$6 billion and S$8 billion in Singapore, China, Malaysia and Vietnam.

The newspaper didn’t disclose source of the information.

“GuocoLand wishes to clarify that the group currently has no plans to establish a real estate investment trust,” the company said in a filing to the Singapore Exchange.

The statement however added: “The group will review this as a possible strategy to extract value from its property portfolio, at the appropriate time”.

In response to the news report, GuocoLand shares rose by as much as 2.7 per cent in early trade before giving up some of those gains.

GuocoLand recently hired Leslie Yee, former head of research and funds management at The Link Management Ltd, the manager of The Link REIT in Hong Kong.

His appointment, as general manager of special projects has sparked speculation that the group is laying the groundwork for potential REIT flotations.

GuocoLand’s Malaysian unit GuocoLand Malaysia launched a Reit in 2006.

Tower REIT, listed on Bursa Securities, comprises three commercial buildings located in Kuala Lumpur — HP Towers, Menara HLA and Menara ING.

Source : Channel NewsAsia – 29 Dec 2010

Join The Discussion

Compare listings