Paradigm REIT, a local real estate investment trust, has recently signed an underwriting agreement with three major investment banks. This is a big move as the company gets ready for its intended listing on the Main Market of Bursa Malaysia. The collaborative deal features Maybank Investment Bank Bhd, CGS International Securities Malaysia Sdn Bhd and AmInvestment Bank Bhd. This gives Paradigm REIT the advantage of being the issuer of the underwriting agreement.
The listing is contingent upon the receipt of regulatory approvals and the finalization of offering process. Through its strategic pivot to an operating partnership, Paradigm REIT hopes to increase its visibility and access to capital. The maximum offering fund size is 1.6 billion units. 640,000 offer units are available to retail and institutional investors.
To underwrite this call, Paradigm REIT will float 1.6 billion units at RM1.00 apiece. On top of that, they will pay a cash compensation of RM837 million. The assets being disposed of by the respective vendors have a total consideration of RM2.44 billion, including three premier retail properties: Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru.
Selena Chua Kah Noi, the Chief Executive Officer of Paradigm REIT Management Sdn Bhd, emphasized the strategic importance of this undertaking.
“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.” – Selena Chua Kah Noi
Chua alluded to the sustainable growth that could be expected from their high-quality asset base.
“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.” – Selena Chua Kah Noi
Paradigm REIT is pleased to be able to advance its listing plans. They hope to use their impressive pipeline and deep market experience to deliver a unique asset class to a broad set of capital providers. The expected debut on Bursa Malaysia is a major step for the investment trust. It will markedly improve the trust’s capacity to capitalize on expansion opportunities in the real property business.
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