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