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CapitaMalls Asia Ltd, one of Asia’s largest listed shopping mall developers, owners and managers by property value and geographic reach, has launched the prospectus and retail portion of what will be the largest shopping mall REIT (real estate investment trust) in Malaysia to date.

CapitaMalls Asia is part of Southeast Asia’s largest property developer Singapore’s CapitaLand Ltd.

The listing of CapitaMalls Malaysia Trust (CMMT) REIT on the Main Market of Bursa Malaysia on July 16 is expected to have a market capitalisation of RM1.4bil if an over-allotment option of up to 15% of the offering of 786 million units is exercised. If this portion is not exercised, it may raise RM864mil.

Its initial portfolio of three shopping malls – Gurney Plaza in Penang, Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor – has a total net lettable area of 1.88 million sq ft and has been valued at RM2.13 bil.

Lim Beng Chee … ‘We see acquisition opportunities in Malaysia’s shopping mall sector.’

The CMMT IPO will have a total of 1.35 billion units in issue, of which 719 million units were offered to institutional investors at between RM1 and RM1.10 each in late June and 67.5 million units for individual investors at an indicative price of RM1.08 yesterday, with a forecast distribution yield of 6.9% for 2011. The final price will be determined on July 8.

CapitaMalls Asia CEO Lim Beng Chee told a press conference that occupancy and rental yields had increased for all three malls in its stable despite a weak economy in the last two years.

“We see acquisition opportunities in Malaysia’s shopping mall sector, with its fragmented ownership structure.

“CapitaMalls Asia will give CMMT a right of first refusal over any retail properties that we may acquire in future, including the extension that is being carried out at Penang’s Gurney Plaza. If acquired, Gurney Plaza extension will increase CMMT’s asset size by about 11%,” he said.

CIMB Investment Bank Bhd, JPMorgan Chase & Co and Maybank Investment Bank Bhd are jointly managing the IPO sale.

“As part of our long-term commitment, CapitaMalls Asia also plans to set up a Malaysia retail property fund to acquire and develop retail properties in Malaysia. CMMT will similarly have a right of first refusal over this pipeline of retail properties,” Lim said.

CIMB Investment Bank Bhd, JPMorgan Chase & Co and Maybank Investment Bank Bhd are jointly managing the sale. -ends-

Individual investors will get a refund if the final price for institutional investors is lower than the retail price.

CMMT’s sponsor, CapitaMalls Asia Ltd, will retain a stake of 41.74% in CMMT.

If an over-allotment option of up to 117 million units is exercised, CapitaMalls Asia’s stake in CMMT will be 33%.

The IPO follows the RM1.5bil raised by Sunway Real Estate Investment Trust in its initial sale last week and underscores rising investor appetite for equities in Malaysia amid an economic rebound.

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The Employees Provident Fund (EPF) will pare down its stake in RHB Capital Bhd to 40% by mid-2011, said chief executive officer Tan Sri Azlan Zainol.

“We have to sell down to 40% by the middle of next year,” he said on the sidelines of Securities Commission-Bursa Malaysia Corporate Governance Week here yesterday.

He said the state pension fund had not identified potential buyers for its 57% stake in the country’s fourth-biggest bank by assets.

Meanwhile, Azlan said EPF aimed to grow its overseas investment to between 10% and 15% next year from only 7% now. “We want to look at bond papers as well as properties,” he said.

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TOP Glove Corp Bhd (7113), the world’s largest rubber glove maker, plans to spend RM80 million until May next year to set up three new plants and increase production lines.

Chairman Tan Sri Dr Lim Wee-Chai said the expansion will bring the number of its factories and production lines to 20 and 459 respectively, producing 41.2 billion pieces of rubber gloves a year.

“The global rubber glove market is growing every year and we have to be consistent by increasing capacity, improving research and development and being more cost-efficient,” Lim told an analyst and media briefing in Kuala Lumpur yesterday.

Furthermore, the oil spill at the Gulf of Mexico in the US has seen a 40 per cent increase in rubber glove demand.

“Demand for cleanroom and safety gloves has surged as environmental groups and oil and gas workers require them for the clean-up,” said Lim.

He said the industry outlook was likely to be sustained, which would see the company register net profit growth of up to 10 per cent a year as in the past few years.

Top Glove currently has 17 factories, out of which 11 are in Malaysia, four in Thailand and two in China. They produce 33 billion pieces of rubber gloves a year, or some 33 per cent or more of the world rubber glove market.

The Klang-based company has 10,900 employees, more than 900 customers worldwide and exports to more than 180 countries.

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