IslamicFinance.de

Johor state investment arm Johor Corp will list its Islamic real estate investment trust (REIT) known as Al-Salam on the Main Market of Bursa Malaysia on Sept 22. Al-Salam REIT is seeking to raise gross proceeds of RM252.36 million arising from the issuance of 252.36 million offer units, based on an offer price of RM1 per unit, which will account for 43.5% of the trust. The bulk or RM242.86 million of the proceeds raised from the initial public offering (IPO) will be used to pay for the purchase of five properties that will make up the initial portfolio.The Islamic REIT will primarily comprise commercial retail, office and industrial purposes as well as real estate-related assets.

Demand for Malaysian Islamic real-estate investment trusts may withstand a sluggish property market as their steady rental income is popular with pension funds amid a shortage of Shariah-compliant assets. Johor Corp plans to list the RM900 million (S$333 million) Al-Salam REIT, Kamaruzzaman Abu Kassim, the company's president said. The prospectus will be registered by July and the trust expects to deliver returns of around 6.3 per cent in 2016, he said. Al-'Aqar Healthcare REIT, majority owned by Johor Corp, returned 11.7 sen a unit to shareholders. That worked out to a dividend yield of 8.4 per cent based on its year-end closing price.

Johor Corp (JCorp), a Malaysian state-owned firm, plans to list an Islamic real estate investment trust (Reit) holding MR900m ($253.22m) in assets by the third quarter of this year.

According to MCIS Zurich Insurance Bhd and Bangkok Bank Bhd, Johor Corp will apparently pay less than AAA issuers to sell US$976 million of sukuk on local-government guarantees.
They say that Johor Corp could price the 10-year Islamic notes to yield 30 basis points more than non-Islamic sovereign bonds.