CapitaMalls Malaysia Trust raises RM786.5 mln in IPO

Company said at this rate, investors may get distribution yields of as much as 7.2% for forecast period 2010 and 7.5% for forecast year 2011.

CapitaMalls Malaysia REIT Management Sdn. Bhd. (CMRM), Manager of CapitaMalls Malaysia Trust (CMMT), announced that it has received strong interest from institutional and retail investors for its initial public offering (IPO) of 786,522,000 units which was supported by DBS Bank Limited and J.P. Morgan (SEA).

The price for institutional and cornerstone investors has been fixed at RM1.00 per unit, while the final retail price has been fixed at RM0.98 per unit. At the unit price of RM1.00, institutional investors are expected to get distribution yields of 7.2% for Forecast Period 2010 and 7.5% for the Forecast Year 2011.

CMMT will be listed on the Main Market of Bursa Malaysia Securities Berhad on 16 July 2010.

Mr Lim Beng Chee, CEO of CapitaMalls Asia, the sponsor of CMMT, said, “We are heartened by the success of the offering. Despite the challenging market conditions, it is priced at one of the tightest yields for a Malaysian REIT IPO, thus reflecting the quality of the portfolio.”

“The listing of CapitaMalls Malaysia Trust gives CapitaMalls Asia a strategic platform to tap local capital, paving the way for us to further expand our franchise in Malaysia and enlarge our leasing network and fee-management business.”

Ms Sharon Lim, CEO of CMRM said, “We are pleased with the interest from institutional investors. It is a strong endorsement of investors’ confidence in CapitaMalls Malaysia Trust’s ability to build on our proven track record in managing and enhancing shopping malls, and the attractiveness of the three established malls in our initial portfolio. We thank them for their support, and look forward to their long-term participation as we continue to grow our business in Malaysia.”