Kuala Lumpur: WCT Holdings Bhd has received approval from the Securities Commission Malaysia (SC) to establish and list Paradigm Real Estate Investment Trust (Paradigm REIT) on the Main Market of Bursa Malaysia. In a filing with Bursa Malaysia, WCT announced that Paradigm REIT will be launched with an initial fund size of 1.6 billion units and will acquire three properties valued at RM2.44 billion.

According to BERNAMA News Agency, the acquisition by Paradigm REIT involves a total purchase consideration of RM2.44 billion, which will be satisfied through the issuance of 1.6 billion units valued at RM1.00 per unit and RM837 million in cash funded by structured medium-term notes (MTNs). The proposed offering includes up to 254.7 million units allocated for retail investors, comprising WCT shareholders, employees, and the Malaysian public.

From the 254.7 million units, there will be a restricted offer for sale of up to 194.86 million restricted offer units (ROUs) to the Entitled WCTH Shareholders on a basis of one ROU for every eight existing shares held on a date to be announced by WCT. Additionally, up to 27.79 million units will be available to eligible directors and employees of the WCT Group and Paradigm REIT Management Sdn Bhd. Furthermore, 32 million units are designated for the Malaysian public, with 16 million units reserved for application by the Bumiputera public investor via balloting.

Meanwhile, 305.3 million units will be offered to institutional and selected investors, with 200 million units reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (MITI). The remaining 105.34 million units are allocated to institutional investors and selected investors.

There are conditions whereby Paradigm REIT is required to allocate 12.5 per cent of its enlarged number of issued units to Bumiputera investors approved by MITI and ensure that at least 50 per cent of the units offered to Malaysian public investors via balloting are made available to Bumiputera public investors. The listing is subject to approvals from Bursa Malaysia, shareholders, state authorities, and financiers.