The disposal consideration for the retail properties is RM1.03bil that was determined based on independent valuations.
YTL Corp said after the proposed disposal, Starhill REIT would be well-positioned as a global hospitality REIT with two assets under its portfolio, namely the J.W. Marriott Hotel as well as 60 units of service apartments, four levels of commercial podiums and two levels of car parks at The Residences at the Ritz Carlton in Kuala Lumpur.
YTL Corp managing director Tan Sri Francis Yeoh Sock Ping said this exercise would restructure the RM8bil in retail and hotel assets under its control into two distinct REIT portfolios, namely the hospitality REIT in Malaysia and retail-centric REIT in Singapore.
“This will benefit both REITs in terms of pursuing growth and development strategies in terms in a single and focused class of assets.
“On the completion of the rationalisation, Starhill REIT in Malaysia will be transformed into a pure-play vehicle for hotel and hospitality-related assets,” said Yeoh, who is also the chief executive officer of Pintar Projek Sdn Bhd, which manages Starhill REIT.
Yeoh said hotel assets with the potential to be injected into Starhill REIT would include Pangkor Laut, Tanjong Jara and Cameron Highland resorts, Ritz-Carlton Kuala Lumpur and the remaining part of The Residences, among others.
“From a global standpoint, we see potential for Starhill REIT to acquire high-end assets in key-international hot-spots in Bali, Saint Tropez and Phuket,” he said.
Meanwhile, Yeoh said Starhill Global REIT had embarked on the acquisition of David Jones Building in Perth, Australia.