(Repeats to additional subscribers)
* IPO delayed by about a month as managers resubmit
prospectus - source
* Two Japanese properties near Sendai removed from asset
composition - source
* Value of REIT to be reduced $21.8 mln from $1.05 bln
(Adds details, quotes, comments)
By Min Hun Fong
KUALA LUMPUR, April 21 The listing of Malaysia's
Axis Global Industrial real estate investment trust (REIT), the
world's largest sharia-compliant REIT, has been pushed back by
about a month after two of its Japanese assets were damaged by
the March earthquake, according to a source.
The source said that the two properties, which are located
in Iwanuma near Sendai, the worst hit area in Japan, has been
removed from the initial asset composition, which means the size
of the REIT has been slightly reduced.
"The two properties were small contributors to the
portfolio, and shouldn't affect the IPO by that much," the
source with direct knowledge of the matter told Reuters.
Listing documents obtained by Reuters valued the two
properties at 1.8 billion yen ($21.8 million) of an initial
asset size of about 3.17 billion ringgit ($1.05 billion), making
it the largest REIT compliant with Islamic or sharia laws. The
REIT comprises of properties in Australia, Hong Kong and Japan.
Australia's Goodman Group , which sold the
properties to the REIT, will continue to be property managers
directly or through their associated companies such as J-REP in
Japan and GPS Hong Kong Whole Sale Ltd.
The IPO was initially slated to raise 2.15 billion ringgit
to partially pay for the asset acquisitions, while the remainder
would have been financed by debt. [ID:nL3E7EB0Y1]
The source said that a new listing prospectus reflecting the
change in the asset composition had to be resubmitted to the
Malaysian Securities Commission for approval.
Based on the initial timeline of the process, Axis Global
was supposed to list in early June, but could now see the
process pushed back to the end of the month or early July
instead, said the source said, who was not authorised to speak
Axis Global will also be the largest free float REIT in
Malaysia with 98 percent of the REIT units to be offered during
The REIT managers, Axis REIT Managers Sdn Bhd, which
presently run Malaysian-listed Axis Real Estate Investment Trust
, declined to comment on the development.
"No comment (on the Japanese properties), but everything is
on track," Stephen Hawkins, a part-owner of Axis REIT Managers
and chief executive officer of Axis Global, told Reuters.
Axis REIT Management, which also manages Axis REIT
, is planning to list Axis Global Industrial REIT,
valued at over 3 billion ringgit to meet demand for new Islamic
finance products. [ID:nL3E7EB0Y1]
The IPO has been set at an indicative price range of
1.00-1.05 ringgit ($0.329-$0.345) a unit, two sources who have
seen the information memorandum had told Reuters.
($1 = 82.465 Japanese Yen)
($1 = 3.016
(Editing by Lincoln Feast)