Selena Chua Kah Noi, CEO of Paradigm REIT Management, with Michael Oh-Lau, CEO of Maybank Investment Bank, at the signing ceremony of the underwriting agreement
KUALA LUMPUR: Paradigm Real Estate Investment Trust
(Paradigm REIT), a local real estate investment trust, has signed an underwriting agreement with three investment banks ahead of its proposed listing on the Main Market of Bursa Malaysia.
Paradigm REIT said it has entered into the agreement with Maybank Investment Bank Bhd (Maybank IB), CGS International Securities Malaysia Sdn Bhd (CGSI) and AmInvestment Bank Bhd (AmInvestment).
The trust is scheduled to be listed with an initial fund size of 1.6 billion units, of which 560,000 offer units will be made available to retail and institutional investors.
"The proposed offering comprises a retail tranche of up to 254.65 million offer units and an institutional offering of at least 305.34 million offer units,” it said in a statement today.
The listing will be underpinned by the injection of three premier retail assets: Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ), and Paradigm Mall Johor Bahru (PMJB).
Paradigm REIT said the assets are being disposed of by the respective vendors for a total consideration of RM2.44 billion.
The consideration will be satisfied via the issuance of 1.6 billion units at RM1.00 per unit, alongside a cash payment of RM837.00 million.
Paradigm REIT Management Sdn Bhd chief executive officer Selena Chua Kah Noi said the agreement formalises the next step towards the listing.
"With shareholder endorsement and the backing of our advisers and joint underwriters, Paradigm REIT is well-positioned to deliver a compelling investment proposition to both institutional and retail investors.
"Our high-quality asset base and future pipeline form a strong foundation for long-term, sustainable value creation. We look forward to delivering consistent returns and growth for our unitholders,” she said.
Paradigm REIT’s listing on Bursa Malaysia is expected to take place upon completion of regulatory approvals and the finalisation of the offering process.
Maybank IB is the principal adviser, lead bookrunner and sole managing underwriter. It is also joint bookrunner and joint underwriter alongside CGSI and AmInvestment. - Bernama
