STARHILL REIT: Resounding success of Malaysia’s first international REIT

Retail Offering Subscription Rate – 6.27 Times
Institutional Offering Subscription Rate – 8.80 Times

Pintar Projek Sdn Bhd, the manager of Starhill Real Estate Investment Trust (Starhill REIT) today announced the results of its initial public offering of 509,599,000 new units in Starhill REIT, with subscription rates of 6.27 times for the Retail Offer and 8.8 times for the Institutional Offer. Pintar Projek Sdn Bhd (Pintar Projek) is a subsidiary of YTL Corporation Berhad.

The initial public offering comprised a combined total of 509,599,000 units available under the retail and institutional offers. A total of 29,999,000 units were offered to the Malaysian Public under the retail offer (Retail Offer), whilst the remaining 479,600,000 units were made available to Malaysian and foreign investors under the institutional offer (Institutional Offer).

The subscription rate for the Retail Offer was 6.27 times, drawing over 22,800 applications from the public, seeking 218.2 million units.

Meanwhile, the final subscription rate for the Institutional Offer was around 8.8 times which was priced at RM1.01 per unit (Institutional Price), drawing demand in excess of 4,218 million units from domestic and international investors.

The final retail price has been set at RM0.96 per unit (Final Retail Price), representing a discount of 5% to the Institutional Price.

Speaking from London at the conclusion of Starhill REIT’s global roadshow, Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, Chief Executive Officer of Pintar Projek and Managing Director of the YTL Group, remarked, “The resounding success of Starhill REIT’s public offering has exceeded all expectations and represents to us that domestic and international investors alike are voting with their purses and hearts, expressing their overwhelming support, not just for this groundbreaking transaction and for the YTL brand, but for the Malaysian capital markets as well – demand from institutional investors outstripped domestic demand by a factor of 2 to 1”.

“The abundant demand for units under the Retail Offer was particularly heartening, given the large number of IPOs and bearish sentiments prevailing in the local market at this time. Starhill REIT is off to an excellent start and it is now up to us to ensure that our new unit-holders are well-rewarded by this investment”.

Background Information on Starhill REIT


With an approved valuation of RM1.15 billion, Starhill REIT is currently Malaysia’s largest real estate investment trust, comprising the YTL Group’s prime properties situated in Bukit Bintang, namely Lot 10 Shopping Centre, the newly-refurbished Starhill Gallery and the adjoining JW Marriott Hotel Kuala Lumpur.

Starhill REIT’s principal investment strategy is to invest in a diversified portfolio of income-producing real estate, used primarily for retail, office and hospitality purposes, with particular focus on retail and hotel properties. The primary objectives of Starhill REIT are to provide unit-holders with stable cash distributions with the potential for sustainable growth, principally from the ownership of properties, and to enhance long-term unit value.

Investors are expected to benefit from the stable distributions and future growth of rental rates generated by the aforesaid properties of Starhill REIT. Based on the Final Retail Price of RM0.96 per unit and a payout of 100% for financial years ending June 2006 and 2007 and 95% for financial year ending June 2008, the forecast gross yield for Starhill REIT is 6.56% for the financial year ending June 2006, with yields for the 2007 and 2008 financial years forecast at 6.86% and 6.71%, respectively.

Starhill REIT was established by a trust deed entered into on 18 November 2005 between Pintar Projek and Maybank Trustees Berhad, as manager and trustee, respectively, of Starhill REIT.