Starhill REIT acquires KL retail properties

YTL Pacific Star, the manager of Starhill Global REIT, said it is buying two properties in the Malaysian capital Kuala Lumpur for a total of S$450 million.

The two properties are the Starhill Gallery and Lot 10 Shopping Centre along KL’s main shopping street, Jalan Bukit Bintang.

Starhill Gallery will be acquired for about S$275 million and Lot 10 will be bought for S$175.2 million.

The acquisitions will be made through an asset-backed securitisation structure.

It will be funded by cash of S$131 million, the issuance of S$177 million in convertible preferred units, and about S$144 million in five-year senior term notes.

The properties will be leased to a master tenant, Katagreen Development.

Executive Chairman of YTL Pacific Star Francis Yeoh said a master tenant will provide Starhill REIT with strong and stable cash flow over the next 6 to 9 years.

YTL Pacific Star expects the acquisitions to be accretive to Starhill Global REIT’s distribution per unit.

With the acquisition, Starhill Global REIT’s portfolio will grow to S$2.6 billion comprising 13 properties across Singapore, Australia, China, Japan and Malaysia.

Source : Channel NewsAsia – 16 Apr 2010

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