Petronas Towers owner to list Malaysia's biggest REIT in April-sources

KUALA LUMPUR/HONG KONG, March 1 Fri Mar 1, 2013 1:39am EST

KUALA LUMPUR/HONG KONG, March 1 (Reuters) - KLCC Property Holdings Bhd, which owns Malaysia's iconic Petronas Twin Towers, is set to complete a restructuring and list in April the nation's biggest real estate investment trust (REIT), sources told Reuters.

The trust, three times larger than the next biggest Malaysian REIT, will raise no new money. The corporate restructuring was unveiled in November, creating a so-called stapled REIT by bundling existing shares of KLCC Property and units of KLCC REIT, in a bid to lure yield-hungry investors.

The restructuring will also help boost profits because of the REIT's income tax exemption.

KLCC Property's media office and investor relations did not return calls and email seeking comment on the timing of the REIT listing and the corporate restructure.

KLCC Property Holdings will house assets in excess of 15 billion ringgits ($4.9 billion) - including the 88-floor Petronas Twin Towers. It will be three times bigger than Malaysia's largest REIT, Sunway REIT.

"They are looking at a market value of 10 to 11 billion ringgits," said one of the sources, declining to be named because he is not authorised to speak to the media.

CIMB Investment Bank Bhd and Citigroup Global Markets Ltd are the principal adviser and the international financial adviser, respectively, for the deal.

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