Kuala Lumpur: Paradigm Real Estate Investment Trust (Paradigm REIT), a local real estate investment trust, has signed an underwriting agreement with three investment banks ahead of its proposed listing on the Main Market of Bursa Malaysia.
According to BERNAMA News Agency, Paradigm REIT has entered into the agreement with Maybank Investment Bank Bhd (Maybank IB), CGS International Securities Malaysia Sdn Bhd (CGSI), and AmInvestment Bank Bhd (AmInvestment). The trust is scheduled to be listed with an initial fund size of 1.6 billion units, of which 560 million offer units will be made available to retail and institutional investors.
The proposed offering comprises a retail tranche of up to 254.65 million offer units and an institutional offering of at least 305.34 million offer units. The listing will be underpinned by the injection of three premier retail assets: Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ), and Paradigm Mall Johor Bahru (PMJB).
Paradigm REIT indicated that the assets are being disposed of by the respective vendors for a total consideration of RM2.44 billion. The consideration will be satisfied via the issuance of 1.6 billion units at RM1.00 per unit, alongside a cash payment of RM837.00 million.
Paradigm REIT Management Sdn Bhd’s chief executive officer, Selena Chua Kah Noi, stated that the agreement formalizes the next step towards the listing. She emphasized that with shareholder endorsement and the backing of advisers and joint underwriters, Paradigm REIT is well-positioned to deliver a compelling investment proposition to both institutional and retail investors. The REIT’s high-quality asset base and future pipeline form a strong foundation for long-term, sustainable value creation, and it aims to deliver consistent returns and growth for its unitholders.
The listing on Bursa Malaysia is expected to take place upon completion of regulatory approvals and the finalization of the offering process. Maybank IB is acting as the principal adviser, lead bookrunner and sole managing underwriter, and is also a joint bookrunner and joint underwriter alongside CGSI and AmInvestment.