Sunway REIT’s capital recycling exercise strategically sound


Ng: The new hotel is expected to deliver stronger income potential and improved yield relative to the divested property.

Sunway Real Estate Investment Trust’s (Sunway-REIT) decision to dispose of the 27-year-old Sunway Hotel Seberang Jaya (SHSJ) for RM60mil has raised investor anxieties over near-term yield dilution and an apparent tilt towards development-heavy investments.

As one of Malaysia’s most established retail-focused REITs, Sunway-REIT has long been anchored by its portfolio of stabilised, income-generating assets.

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