Sunway REIT's retail expansion to be earnings accretive

KUALA LUMPUR: Sunway Real Estate Investment Trust's (REIT) expansion in the hypermarket segment is a positive development given that the essential service had demonstrated resilience during the Covid-19 pandemic, said MIDF Research.

The research firm said the REIT's proposal to purchase six hypermarkets from the Employees Provident Fund's Kwasa Properties Sdn Bhd for RM520mil is below the market value of RM593mil, which will give it a net unrealised fair value gain of RM66mil upon completion of the acquisition.