Commercial & Industrial Property News Update

Malaysia - Naim Holdings Aim For REIT Worth About RM 3 billion

October 4, 2012

Sarawak-based construction firm and property developer Naim Holdings Bhd is aiming to launch its own REIT in about six to nine years time, based upon upcoming projects including a "mini KLCC".

Following the footsteps of firms such as TA Global Bhd and KLCC Property Holdings Bhd, Sarawak-based Naim Holdings Bhd is aiming to have its own real estate investment trust (REIT) in time to come.

The firm said that its REIT would have a target size of about RM 3 billion, and would include future developments. Senior director for corporate services Ricky Kho said the company planned to launch the REIT in six to nine years, when its property assets had reached a "sufficient size".

Among the developments planned for inclusion into the REIT would be the upcoming "mini KLCC" project on the site of the old Bintulu Airport, which has a gross development value (GDV) estimated at RM 2 billion.

"We are going to have a shopping complex, condominiums, SOHO (small office home office) units and hotels," Kho said.

The development for the as-yet-unnamed project will take between 10 to 15 years. Naim said that it would launch next year the shopping complex, worth about RM 400 million, as the first component of the project.

Naim's REIT would be the first Sarawakian REIT, said Kho, adding that the REIT would allow the company to manage the tenant mix of its commercial property units to "maintain the dynamic and vibrancy of the entire development."

Other properties to be injected include the two-storey Miri Permy shopping mall, which the company says is already yielding about 12% returns in rental income. The mall is currently 94% occupied and is expected to generate rental income of about RM 8 million per annum.

Upcoming developments will also be added to the REIT, including a mixed-development in Batu Lintang in Kuching, Pantain Piasau Residences and Piasau Camp in Miri.

Tags: Commercial real estate, Investment properties, Shop for rent, Income units

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