KUALA LUMPUR (Nov 22): IGB Bhd's share price jumped as much 55 sen or 20.37% to RM3.25 today before paring gains at Bursa Malaysia's afternoon break following the group's announcement of its plans to establish and list on Bursa Malaysia's Main Market a commercial real estate investment trust (REIT) comprising assets at Mid Valley City and those along Jalan Tun Razak here.

Yesterday, IGB Bhd said in a Bursa filing that the initial portfolio of the proposed IGB Commercial REIT will comprise properties owned by IGB Bhd subsidiaries.

"The proposed REIT establishment and listing will allow IGB Bhd to unlock the value of its commercial property portfolio," IGB Bhd said.

The group said the properties within Mid Valley City are Menara IGB, Centrepoint South, Centrepoint North, The Gardens South Tower, The Gardens North Tower, Menara Southpoint and Boulevard Offices. The Jalan Tun Razak properties comprise Menara Tan & Tan and GTower.

IGB Bhd said the REIT establishment and listing entails the disposal by the subsidiaries of IGB Bhd of their interests in the properties to IGB Commercial REIT with the sale consideration to be satisfied through a combination of cash and issuance of new units in IGB Commercial REIT.

According to IGB Bhd, the REIT establishment and listing includes the "proposed restricted offer for sale and distribution-in-specie by IGB Bhd of the units to the entitled shareholders of IGB Bhd following the proposed disposal, and proposed placement of units to institutional and selected investors to meet the public unitholding spread requirement of at least 25% pursuant to the Main Market listing requirements of Bursa".

The group said the REIT establishment and listing will be subject to, among others, valuation of the properties besides approvals from relevant authorities and IGB Bhd shareholders.

Hong Leong Investment Bank Bhd has been appointed as the principal adviser and bookrunner for the REIT exercise, according to IGB Bhd.

At Bursa's 12:30pm afternoon break today, IGB Bhd settled at RM3.03 to become the exchange's top gainer. The counter saw 463,200 shares traded.