Among the potential REITs that may list on Bursa Malaysia next year are Sunway City Bhd’s (SunCity) REIT and Singapore‘s CapitaLand Ltd REIT. (Currently, Malaysia has 13 REITs listed on Bursa Malaysia with an estimated market capitalisation of RM4.1 billion as at January 2009.)

According to REITs experts, the present high yields of #9% of Reits are deterring others from doing the listing as they fear that  as they will not be able to sustain the high yields.

As for SunCity Reit:SUNWAY City (SunCity) Bhd plans to inject RM4 billion real estate into its investment trust (REIT). It is speculated that SunCity may inject Sunway Pyramid Mall, Sunway Resort Hotel, Sunway Pyramid Hotel, Menara Sunway, Sunway University college and Monash University campus in Bandar Sunway, Selangor, Sunway Carnival Mall in Penang and Tambun Hypermarket in Ipoh, Perak into the REIT. These properties currently command an average of 6-7 per cent yield per annum. Other properties which might be included are Wisma Denmark in Kuala Lumpur, Sunway Medical Centre, KL South shopping mall in Cheras, and four new office towers in Bandar Sunway.

However, SunCity is still weighing its option of whether to list on Bursa Malaysia or via reverse takeovers in Singapore or Australia.

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