By BUSINESS TIMES
PROPERTY developer Sunrise (6165) may consider injecting some of its property assets into a real estate investment trust (REIT) as they begin to deliver stable income, its executive chairman says."We have invested considerably in a pool of investment assets over the last few years, which are now starting to bear fruit," said Tong Kooi Ong.Sunrise, ranked ninth by market value among listed Malaysian developers, may consider a REIT "at a later stage", Tong said in an email interview.This month, larger rival Sunway City said it will inject eight retail properties into a REIT in a deal bankers said may raise up to RM1 billion for the company.REITs mainly invest in commercial properties and pay most of the rent to shareholders as dividends, which are usually higher than yields of government bonds and offer capital gains if property prices rise.Tong, a former banker and stockbroker, also said that Sunrise has not yet planned to enter the fast-growing markets of Vietnam and China."For the medium term, our overseas focus will be on Canada. We do not have plans for the moment to venture into Vietnam or China," he said.Later this year, Sunrise plans to launch two projects, an office tower project in the Kuala Lumpur as well as a residential project in Vancouver, Canada, Tong said.Malaysian property developers, such as SP Setia and Gamuda, have embarked on multi-billion ringgit developments in Vietnam to tap rapid growth. Sunway City has formed property joint ventures in fast-growing China and India.Malaysian developers expect higher sales from home this year as the economy rebounds from last year's downturn. The stock market rally in 2009, which saw the benchmark share index jump nearly 40 per cent, is expected to further boost house buyers.- Malaysia REIT Market NewsRead more...
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