24 Jun 2010

 

REIT an option for TA, says CEO

 

KUALA LUMPUR: TA Enterprise Bhd (TAE) is open to the idea of injecting some of its property assets into a real estate investment trust (REIT), according to managing director and chief executive officer Datin Alicia Tiah.

“I wouldn’t say no (about considering a REIT), but it is something we would consider. It’s an option opening to us,” she said after the joint AGM and EGM of both TAE and subsidiary TA Global Bhd yesterday.

She said the company was looking at prospects of expanding its property division overseas, particularly in China.

“At the AGM, our chairman announced that the company is looking at possibilities of expanding into China. However, nothing is concrete so far,” she said.

Tiah said the group was currently developing a mixed-development project in Richmond, Vancouver.

“The area we are developing is the preferred place to stay for Asian immigrants. The project will be developed on a 22-acre site but only 10.5 acres can be developed. The remaining acreage is for landscape purposes.”

Tiah said the project would be spread over the next five to seven years.

Going forward, Tiah said, the group’s property development division was expected to contribute significantly to its earnings as it had several projects in the pipeline.

According to its annual report, the group has mixed commercial developments in Sri Damansara, Bukit Bintang and the KLCC area.

It also has a boutique residential development at Jalan U-Thant in Kuala Lumpur and a condominium development at Dutamas, Mont’Kiara.

Meanwhile, shareholders yesterday approved the sale of TAE’s entire stake in Quayside Gem Ltd (QGL) to TA Global for RM651.8mil, to be satisfied via issuance of consideration shares and assumption of a loan facility.

QGL is the owner of the Swissotel Merchant Court in Singapore.

TAE said in a statement that the proposed acquisition was expected to bring synergistic benefits to it as it would further enhance the group’s hospitality operations in major cities around the world.

Sources : The Star (Business)