As reported in The Star Online, Sime Darby Bhd is planning to develop a real estate investment trust (REIT) to generate resilient and recurring income stream, starting with the reverse takeover of Saizen REIT.
Sime Darby will benefit from its direct stake in Saizen REIT as they foresee the REIT platform to have greater flexibility in its future fund-raising exercises to build a sizeable international portfolio of assets.
Two of Sime Darby's indirect units, Hastings Deering (Australia) Ltd and Sime Darby Property Singapore Ltd (SDPSL), had signed a framework agreement with Japan Residential Assets Manager Ltd (JRAM), the manager of Saizen REIT. Under this agreement Hastings Deering would sell some of its industrial properties in Australia to Saizen REIT in return for new units in Saizen REIT as part of the reverse takeover of Saizen REIT by SDPSL.
The proposals will also allow Sime Darby to re-allocate capital and drive continuous improvements in financial and operational efficiency.
Click here in order to read the full article as published in The Star Online.
