WCT said the move was in line with its ongoing de-gearing initiative, allowing it to monetise its investments.
PETALING JAYA: WCT Holdings Bhd
has proposed to dispose of its three malls for RM2.43bil and inject the assets into a proposed real estate investment trust (REIT) to be listed on the Main Market of Bursa Malaysia.
WCT, which sits on total borrowings of RM3.1bil against cash in hand of RM329mil, said the three malls are Bukit Tinggi Shopping Centre, Klang; Paradigm Mall, Petaling Jaya, and Paradigm Mall, Johor Baru.
The proposed REIT would be known as Paradigm-REIT.
WCT told shareholders yesterday that the RM2.43bil sale proceeds will be in the form of RM837mil cash and 1.6 million shares in Paradigm-REIT at an assumed issue price of RM1 per unit.
It added the move was in line with its ongoing de-gearing initiative, allowing it to monetise its investments.
Notably, Bukit Tinggi Shopping Centre was valued at RM680mil; Paradigm Mall, Petaling Jaya at RM600mil and Paradigm Mall, Johor Baru at RM1.16bil.
Post-disposal of the three malls, a proposed offering will be undertaken to sell up to 560 million units of shares from the 1.6 million shares held by the group.
“Based on the assumed issue price of RM1 per unit, the proceeds of RM560mil from the proposed offering will provide WCT with additional funds to pare down its borrowings,” it noted.
The disposal consideration was arrived at on a willing-buyer willing-seller basis and based on the market value of the subject properties as appraised by an independent property valuer.
The proposals are expected to be submitted to the Securities Commission within two months from the announcement date and are expected to be completed by the first quarter of 2025 should no unforeseen circumstances take place.
