Latest news with #ParadigmREIT
The Sun
10-06-2025
- Business
- The Sun
Paradigm REIT has three hotels and one commercial gateway on its acquisition radar
KUALA LUMPUR: Paradigm Real Estate Investment Trust (Paradigm REIT) has three hotels and a commercial gateway in its acquisition pipeline for the next three years. The assets are Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya, Premier Hotel Klang and Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2. Paradigm REIT Management Sdn Bhd's investment, finance and accounts director, Chong Kian Fah, told reporters after the company's listing on the Main Market of Bursa Malaysia today that the proposed acquisition would be funded with a 50:50 combination of cash and newly issued REIT units. 'We plan to raise the cash portion through medium-term notes. Our proposal is to pay the vendor half in cash and half in new REIT units,' he said. The hotels, which are currently owned by Paradigm REIT's sponsor, WCT Holdings Bhd, are in the vicinity of its mall assets in the trust. Paradigm REIT is looking to do this as early as 2026 to inject the three hotels and then potentially 2027 or 2028 for the commercial gateway asset which the company is looking into besides eyeing other potential acquisition targets. Asked if there are any plans to acquire new malls following the listing, Paradigm REIT executive director and CEO Selena Chua Kah Noi said the company is open to it but it would depend on several key factors. 'We have to look at a few key things, including location, type of tenants, the mall surrounding, catchment and other factors,' she added. Chua said the company is looking to leverage on Visit Malaysia 2026 and is working closely with Tourism Malaysia on the programme. She said Paradigm Mall Johor will benefit the most out of the programme as many Singaporeans will be excited to come visit the country and spend their time shopping. 'Last year, we did a midnight sale in Johor Bahru which was very well received and the tourists from Singapore came in and shopped and we had a lot of activities lined up.' Paradigm REIT made a flat debut on Bursa Malaysia, opening at RM1 per share, unchanged from its initial public offering (IPO) price, on volume of 1.73 million units. It traded within a narrow range and closed at RM1, with 44.58 million shares traded. In May, Paradigm REIT's IPO garnered strong investor interest, with the public tranche oversubscribed by 1.49 times. The non-Bumiputera portion saw an oversubscription rate of 3.7 times. Paradigm REIT's IPO involved no issuance of new units, meaning the trust itself did not receive any proceeds. The entire RM560 million raised from the IPO went to WCT Holdings. Paradigm REIT chairman and independent non-executive director Tan Sri Shahril Ridza Ridzuan said the listing of Paradigm REIT marks a proud milestone for their team and for Malaysia's REIT landscape. 'While we opened flat at RM1, we view this as a stable and encouraging start – especially in a market where volatility has become the norm. 'The strong support from both institutional and retail investors affirms confidence in our portfolio and long-term strategy. We remain focused on delivering consistent value to our unit holders and executing our strategy in making our assets more value-accretive.' Paradigm REIT's current portfolio comprises three shopping centres – Paradigm Mall Petaling Jaya, Paradigm Mall Johor Bahru, and Bukit Tinggi Shopping Centre – collectively valued at RM2.4 billion and strategically located in high-traffic, high-growth urban areas. Managed by Paradigm REIT Management and sponsored by WCT Holdings, Paradigm REIT aims to maintain a disciplined acquisition strategy while leveraging on WCT Holdings' development expertise and network to unlock future growth opportunities. Paradigm REIT is expected to deliver an attractive distribution yield, backed by stable cash flows from its diversified and well-tenanted retail assets. It has committed to distributing at least 90% of its distributable income on a half-yearly basis.
The Star
10-06-2025
- Business
- The Star
Paradigm-REIT makes Main Market debut, the largest M-REIT IPO in over a decade
KUALA LUMPUR: Paradigm Real Estate Investment Trust (Paradigm-REIT) began trading on the Main Market of Bursa Malaysia today, opening at its initial public offering (IPO) price of RM1. At 9.42 am, the counter advanced two sen, or 2%, to RM1.02, with 13.85 million shares changing hands, making it one of the most actively traded counters. 'The listing of Paradigm REIT marks a proud milestone for our team and Malaysia's REIT landscape. While we opened flat at RM1.00, we view this as a stable and encouraging start — especially in a market where volatility has become the norm,' Paradigm REIT Management Sdn Bhd chairman and independent non-executive director Tan Sri Shahril Ridza Ridzuan said in a statement. He added that strong support from both institutional and retail investors reflects confidence in the REIT's portfolio and long-term strategy. 'We remain focused on delivering consistent value to our unitholders and executing our strategy in making our assets more value-accretive,' Shahril said. Paradigm REIT's current portfolio comprises three prime shopping centres – Paradigm Mall Petaling Jaya, Paradigm Mall Johor Bahru, and Bukit Tinggi Shopping Centre – collectively valued at RM2.4bil and strategically located in high-traffic, high-growth urban areas. The IPO is the largest Malaysian REIT IPO in the past 13 years and one of the largest IPOs in Malaysia for 2025. Paradigm REIT has committed to distributing at least 90% of its distributable income on a half-yearly basis, making it an appealing proposition for income-seeking investors.
![MARKET PULSE AM JUNE 10, 2025 [WATCH]](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fassets%2FNST-Logo%402x.png%3Fid%3Db37a17055cb1ffea01f5&w=48&q=75){kind=small}
New Straits Times
10-06-2025
- Business
- New Straits Times
MARKET PULSE AM JUNE 10, 2025 [WATCH]
KUALA LUMPUR: News on the latest moves on the stock and crypto markets. Paradigm REIT opened flat on its Main Market debut today, unchanged against its IPO price of RM1 per unit. In early trade, the REIT moved within a narrow range, between 99.5 sen and RM1.02, with over 11 million units changing hands. Bursa Malaysia saw choppy trading earlier today, tracking Wall Street's mixed performance amid ongoing caution over the outcome of US-China trade talks. The FBM KLCI is expected to trend within the 1,515 to 1,525 range. In the cryptocurrency market, Bitcoin climbed to RM462,888. Ethereum and Solana have followed suit, trading at RM11,374 and RM676, respectively. That's it for Market Pulse.
The Star
28-05-2025
- Business
- The Star
Main Market-bound Paradigm REIT's IPO oversubscribed by 1.49 times
KUALA LUMPUR: Paradigm Real Estate Investment Trust (REIT) has seen its initial public offering (IPO) oversubscribed by 1.49 times, prior to its listing on the Main Market of Bursa Malaysia Securities Bhd. In a statement today, the company reported receiving 4,408 applicants for a total of 79.79 million offer units, which were allocated for the 32 million issue shares to the Malaysian public. "For the Bumiputera portion, 517 applications were received for 4.65 million shares. The remaining shares were reallocated in accordance with the clawback provisions outlined in Section 3.4.3 of Paradigm REIT's prospectus dated May 16, 2025. "As for the non-Bumiputera portion, 3,837 applications were submitted for 75.13 million issue shares, resulting in an oversubscription rate of 3.70 times,' the company said. Paradigm REIT also reported that 73.62 million units under the restricted offering were subscribed by entitled shareholders of WCT Holdings Bhd , with the remaining shares reallocated under the same clawback provisions. Under the restricted pink form offering, 8.43 million units were subscribed by eligible directors and employees. Remaining units were similarly reallocated under Section 3.4.3 of the prospectus. The REIT further stated that its joint bookrunners confirmed full subscription of all 426.59 million institutional offer units, which were offered to institutional and selected investors, including Ministry of International Trade and Industry-approved Bumiputera investors. "Notices of allotment will be posted to all successful applicants by June 9, 2025,' Paradigm REIT said. Maybank Investment Bank Bhd is the principal adviser, lead bookrunner, joint bookrunner, sole managing underwriter, and joint underwriter for the offering. AmInvestment Bank and CGS International Securities Malaysia are joint bookrunners and underwriters, while RHB Investment Bank also serves as a joint bookrunner. - Bernama
New Straits Times
16-05-2025
- Business
- New Straits Times
Main Market-bound Paradigm REIT aims to raise RM560mil from IPO next month
PETALING JAYA: Main Market-bound Paradigm Real Estate Investment Trust (Paradigm REIT) aims to raise RM560 million from its initial public offering (IPO). Paradigm REIT said in a statement today that upon listing, scheduled for June 10, 2025, it is expected to achieve an estimated market capitalisation of RM1.6 billion based on the illustrative issue price of RM1 per offer unit and a total listing of 1.6 billion units. "Paradigm REIT's IPO is poised to be the largest Malaysian REIT IPO in the past 13 years and one of the largest IPOs in Malaysia for 2025. "This shows the ability and depth of the Malaysian equity capital market to support large capital raises despite market volatility arising from the ongoing trade war," it said. It noted that the IPO provides opportunities for investors and unitholders to invest in a real estate investment that offers stable income distribution and potential capital appreciation on investment in the units, and allows Paradigm REIT to gain access to capital markets to raise funds for future real estate acquisitions. Meanwhile, Paradigm REIT Management Sdn Bhd director of investment, finance and accounts Chong Kian Fah said he is confident that the REIT could achieve its estimated market capitalisation amid market turbulence, classifying the REIT as a defensive stock. He said Paradigm REIT's IPO differs from the usual IPO and is more akin to a fixed income-type investment, coupled with the REIT's performance. "Currently, there are a few benchmarks that you can use to gauge whether the assets are competitive. First is the occupancy – whereby the occupancy of a mall, on average, is close to 99 per cent. "The second is our net property income (NPI) margin. So, for last year, our NPI margin was close to 64 per cent. And we are aiming to achieve 26 per cent this year," he told a press conference after the prospectus launch ceremony here today. Currently, Paradigm owns Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru – three assets valued at RM2.4 billion. Based on the retail price of RM1 per unit, the projected annualised distribution yield for 2025 exceeds seven per cent. The IPO comprises a total offering of up to 560 million offer units, of which 254.7 million units are allocated for the retail offering and at least 305.3 million units are offered to institutional investors. "The retail offering comprises approximately 32 million offer units for application by the Malaysian public, of which 16 million units are reserved for bumiputera investors, 27.8 million units for eligible persons, and up to 194.86 million units for entitled shareholders of WCT Holdings Bhd on the basis of one unit for every eight existing shares held as at 5 pm on the entitlement date. WCT Holdings retains 65 per cent ownership in Paradigm REIT indirectly through its main shareholder. "Meanwhile, the institutional offering consists of 200 million offer units reserved for bumiputera investors approved by the Ministry of Investment, Trade and Industry, and the remaining 105.3 million offer units for other institutional and selected investors," it said. Paradigm REIT Management chief executive officer Chua Kah Noi said four assets – namely Hyatt Place Johor Bahru Paradigm Mall, Le Meridien Petaling Jaya, Premier Hotel Klang, as well as Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2 – will be injected into Paradigm REIT. "I think we are looking as early as 2026 to inject the hotels – the three hotels – and then maybe 2027 or 2028 for Gateway@KLIA2," she said.
