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Old news

YTL Group restructures property holdings


By Yong Min Wei of The Edge Financial Daily
Wednesday, 15 December 2010 14:35



KUALA LUMPUR: The YTL group further restructured its property portfolio with the injection of a slew of assets into Starhill Real Estate Investment Trust (Starhill REIT), making it the first full-fledged hospitality REIT in the country.

In a filing with Bursa Malaysia on Tuesday, Dec 14, YTL Corp Bhd announced its proposal to dispose of four assets comprising hotels and resorts to Starhill REIT for a total indicative price RM472 million. Starhill REIT will pay for the assets with a combination of cash and Starhill Global Real Estate Investment Trust (Starhill Global REIT) convertible preference units (CPU) at S$1 (RM2.40) per CPU.

It said the properties involved are Cameron Highlands Resort (valued at RM50 million), Hilton Niseko in Hokkaido, Japan (RM222 million), Vistana Penang (RM100 million) and Vistana Kuala Lumpur (RM100 million).

The vendors of the four properties are either direct or indirect subsidiaries of YTL Corp, namely YTL Land Sdn Bhd, Niseko Village KK, Business & Budget Hotels (Penang) Sdn Bhd and Prisma Tulin Sdn Bhd, which inked four separate conditional sale and purchase agreements on Tuesday with Mayban Trustees Bhd (as trustee for Starhill REIT).

According to the filing, the Bursa-listed Starhill REIT would lease the properties to the respective vendors/lessees for an initial lease period of 15 years with an option granted to renew for another 15 years. The lease payments for the properties are fixed and include a 5% step-up rate every five years.

YTL Corp said the disposals would enable the group to unlock and realise the fair value of the properties while ensuring the on-going business operations of the lessees were not disrupted and that the productive use of the properties was retained through lease arrangements.

"Upon conversion of the CPUs into units in Starhill Global REIT, YTL Corp's unit holdings will increase," YTL Corp added.

The move will position Starhill REIT as a hospitality REIT, something the group has been working on since early this year. YTL Corp owns 63.4% of Starhill REIT.

This is the second corporate exercise the group has undertaken recently. Last month, YTL Corp injected six parcels of land in Malaysia and Singapore into YTL Land & Development Bhd. YTL Land & Development entered into an agreement in a move by YTL Corp to park all its property development and projects under one roof.

The reorganisation involved land in Brickfields, Genting Highlands, Jalan Stonor, Jalan U-Thant, and Orchard Boulevard and Sentosa Cove in Singapore. Also included were six parcels of agricultural land in Bidor, Perak.

The acquisitions, amounting to RM476.05 million, have resulted in YTL Land & Development owning prime land in both Malaysia and Singapore.

The latest move leaves an effectively leaner YTL Corp to focus on its core businesses of ownership and management of regulated utilities and other infrastructural assets through YTL Power International Bhd, YTL Cement Bhd, YTL Land & Development, YTL e-Solutions Bhd and YTL Communications Sdn Bhd (60%-owned by YTL Power) among others.

YTL Corp said that the proceeds from the disposal of its hospitality related properties would be used by the respective vendors, as the case might be, for repayment of bank borrowings, payment of cumulative preference share dividends, redemption of preference shares, payment of special dividends and general working capital.

It also said the proposed disposal was expected to give rise to an estimated net gain on disposal of about RM15.54 million, which would translate into an increase in earnings per share by 0.87 sen. The figure is based on the weighted average number of ordinary shares in issue of 1.79 billion during FY2010 ended June 30.

The proposed disposals are expected to be completed by the second quarter of next year. The Singapore-based Starhill Global REIT, which is listed on the Singapore Exchange has 1.94 billion units in issue as at Nov 30.

http://www.theedgeproperty.com/news-a-views/5843-ytl-group-restructures-property-holdings.html

nazrey said:

Merge this thread :cheers:
http://www.skyscrapercity.com/showthread.php?p=109546084#post109546084

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That one is MRCB, part of KL Sentral Masterplan.

This one is another one opposite, near to it though.

***

On the other end, there are few other parcels that MRCB has projects... about 2 or 3 (got threads already).

And then there is also another project that looks like Pinnacle Duxton in Singapore by our PR1MA.

And then, there is also an unknown developer in one of the parcel in Brickfields.

Followed by RIVO City by Bina Puri that aimed to redevelop the abandoned Monorail City in Brickfields, near KL Sentral.

that was 9 years ago

daeng_jal said:

Why not turn the old istana negara into a hotel as well. While we at it. Sell of museum negara as well and move it to Putrajaya or lake garden. Really ashamed lah national museum tersepit between highway.

Click to expand...

Hmmm.... I too have a thought like that, but after much thinking and feasibility studies, i find out that both ideas doesn't fit the bill, here's my reason why;

Istana Negara: would be unlikely to become a hotel as the symbol of our agong that the gov wants to promote and give knowledge to people n tourists regarding our agong's lifestyle as a federal monarch. Additionally, it will be sensitive to turn former agong residence whom resides there from the first agong (until the recent shift to the new).

Muzium Negara: although the location maybe squeezed in the middle of them big roads, again, the presence of the museum has established a significant icon to the country. I believe it was built by purpose along them roads so the rational is that, people whom sees the murals will remember our roots and history once you drive along the road. Built during the 60s and I've seen many local films and even our currency notes have a picture of the muzium negara.

In the end, you cant blame the museum due to its location as it was quite a breeze during those time when it was built (no massive development during those time). Additionally, i believe the location is just fine, and since the placement of MRT situated right in front of MN, its a great respect and opportunity for the MRT and will benefit MN in the end.