UDA ... July 09

It is considering a plan to raise up to RM500 million by selling shares through a real estate investment trust (REIT) in two years, as it looks at ways of unlocking value from its property assets.

UDA, a unit of the Minister of Finance Inc, plans to list a retail REIT in Malaysia, which would include BB Plaza in Kuala Lumpur, Greentown Mall in Ipoh and Plaza Angsana in Johor Baru.

UDA's current asset is worth over RM2 billion. Besides BB Plaza, Greentown Mall and Plaza Angsana, which have yields of up to 8 per cent, it owns Hentian Puduraya, Hentian Duta, Cahaya Suria, Pertama Complex, Sinar Kota, Plaza UO, Plaza Warisan and Tunas Utama in Kuala Lumpur and Plaza Ampangan in Seremban.

UDA also owns Ancasa Hotel Kuala Lumpur, Puduraya Hotel, Ancasa Resort Allsuites (apartment) Port Dickson, Jerejak Resort & Spa in Penang, and Kuala Terengganu Golf Resort.

UDA will spend RM60 million over the next 6-10 months on a facelift for its malls and commercial buildings, and another RM15 million to refurbish its leisure properties.

Meanwhile, the group's focus will remain on increasing Bumiputera participation in economic activities and property ownership in urban areas.

For fiscal year 2008, UDA posted a net profit of RM28.8 million on revenue of RM313.3 million. Higher revenue attributed to its 14 on-going projects in the Klang Valley, Penang, Johor and Pahang, worth a combined RM900 million.