Starhill REIT distributes 3.62 sen

Starhill Real Estate Investment Trust (Starhil REIT) announced a final income distribution of 3.62 sen per unit for the six-month period from January 1 till June 30.

The total payout amount translates to RM48mil. For the six-months ended Dec 31, Starhill REIT had paid out a 4.01 sen interim dividend. In total, its income distribution for its financial year ended June 30, 2012 stands at 7.63 sen per unit, compared to 6.49 sen per unit in the previous year.

"The completion this financial year of the rebranding exercise to transform the trust into a pure-play hospitality REIT marks a turning point. Starhill REIT's property portfolio has now been fully rationalised to focus on prime, yield-accretive hotel and hospitality-related assets. This has enabled us to achieve a 32% increase in the total income distribution from the trust to RM101.1mil, compared to RM76.5mil last year, and a 17.7% increase in the distribution per unit," Tan Sri Francis Yeoh said in a statement yesterday.

Yeoh is the chief executive officer of Pintar Projek Sdn Bhd, which is the manager of Starhill REIT. Under the rationalisation exercise, Starhill REIT acquired Pangkor Laut, Tanjong Jara and Cameron Highlands resorts, the Vistana chain of hotels, The Ritz-Carlton in Kuala Lumpur, the remainder of The Residences at The Ritz-Carlton in Kuala Lumpur not already owned by the trust, and the Hilton Niseko in Japan.

YTL buys more convertible units in SG Reit

YTL Corp Bhd has acquired about 17.5 million convertible preferred units (CPU) in Starhill Global Real Estate Investment Trust (SG Reit) for RM42.67mil.

YTL Corp told Bursa Malaysia that it had yesterday entered into a sale and purchase agreement with Maybank Trustees Bhd, as the trustee of Starhill Reit, for the acquisition of the CPUs at S$1 each.

YTL Corp said that as such, the CPU acquisition was also done to facilitate Starhill Reit's compliance with Securities Commission's (SC) Reit guidelines and allow Starhill Reit to focus on its core activities of property investment.

"As YTL Corp is a major unitholder of Starhill REIT, it will also participate in the resultant benefits."

The cash acquisition will be via internal funds.

YTL Corp said the acquisition provided an opportunity for the company to further increase its stake in SG Reit upon the conversion of the CPUs.

It was noted that the CPUs carry a net annual yield of 5.09% (net of withholding tax of 10%), which is generally higher than the current fixed deposit rates in Malaysia.

As at March 1, 2012, YTL Corp had a 29.38% stake in SG Reit.

YTL Corp and its subsidiaries currently hold 155.56 million CPUs from the consideration received for the disposal of four hospitality-related properties to Starhill Reit.

It was also pointed out that due to a condition imposed by the Securities Commission, the CPUs can only be held by the YTL Corp group.

Nod for Starhill REIT disposals

STARHILL Real Estate Investment Trust (Starhill REIT) (5109) unitholders yesterday gave the nod to dispose of Starhill Gallery and Lot 10 shopping centres in Kuala Lumpur for RM1.03 billion.

YTL to rationalise RM8b retail, hotel assets into global REITs

YTL Corp Bhd will embark on restructuring its RM8bil real estate investment trust (REIT) and its hotel portfolio.

This will rationalise the group’s retail and hotel asset portfolios by repositioning Starhill REIT as a global hospitality REIT.

It will involve the disposal of its two retail properties, Starhill Gallery and its parcels in Lot 10 to YTL Starhill Global REIT in Singapore.

“This will be followed by the injection of new hotel assets to put Starhill REIT on the path towards becoming a full-fledged international hospitality REIT,” said YTL Corporation in statement yesterday.

The disposal consideration for the retail properties is RM1.03bil that was determined based on independent valuations.

YTL Corp said after the proposed disposal, Starhill REIT would be well-positioned as a global hospitality REIT with two assets under its portfolio, namely the J.W. Marriott Hotel as well as 60 units of service apartments, four levels of commercial podiums and two levels of car parks at The Residences at the Ritz Carlton in Kuala Lumpur.

YTL Corp managing director Tan Sri Francis Yeoh Sock Ping said this exercise would restructure the RM8bil in retail and hotel assets under its control into two distinct REIT portfolios, namely the hospitality REIT in Malaysia and retail-centric REIT in Singapore.

“This will benefit both REITs in terms of pursuing growth and development strategies in terms in a single and focused class of assets.

“On the completion of the rationalisation, Starhill REIT in Malaysia will be transformed into a pure-play vehicle for hotel and hospitality-related assets,” said Yeoh, who is also the chief executive officer of Pintar Projek Sdn Bhd, which manages Starhill REIT.

Yeoh said hotel assets with the potential to be injected into Starhill REIT would include Pangkor Laut, Tanjong Jara and Cameron Highland resorts, Ritz-Carlton Kuala Lumpur and the remaining part of The Residences, among others.

“From a global standpoint, we see potential for Starhill REIT to acquire high-end assets in key-international hot-spots in Bali, Saint Tropez and Phuket,” he said.

Meanwhile, Yeoh said Starhill Global REIT had embarked on the acquisition of David Jones Building in Perth, Australia.

YTL Corp to embark on REIT restructuring

YTL Corp Bhd plans to embark on a restructuring of the RM8 billion real estate investment trust (REIT) and hotel portfolio under its control.

The restructuring exercise will rationalise YTL Corp’s retail and hotel asset portfolio by repositioning Starhill REIT as a global hospitality REIT, said its managing director Tan Sri Francis Yeoh.

Speaking to reporters at a media briefing here today, Yeoh said this involved the disposal of its two retail properties, Starhill Gallery and its parcels in Lot 10, to YTL’s Starhill Global REIT in Singapore.

It will be followed by the injection of new hotel assets to put Starhill REIT on the path towards becoming a full-fledged international hospitality REIT, he said.

According to Yeoh, the disposal consideration for the retail properties is RM1.03 billion.

The restructuring is expected to complete in six months’ time, he said.

After the proposed disposal of retail properties, Starhill REIT will be well-positioned as a global hospitality REIT with two assets in portfolio, Yeoh said.

These comprised the JW Marriot Hotel Kuala Lumpur and 60 units of serviced apartments, four level of commercial podium and two levels of carpark located within the Residences at the Ritz Carlton Kuala Lumpur, he said.

Yeoh is also chief executive officer of Pintar Projek Sdn Bhd which is the manager of Starhill REIT. — BERNAMA