JOHOR CORP, the controlling shareholder of the shariah-compliant Al-‘Aqar Healthcare real estate investment trust (REIT), is expected to float its second trust, comprising retail, office and education assets, soon.

“The initial public offering will be for around 600 million units,” a source tells

The Edge. RHB Investment Bank Bhd is said to be the adviser for the listing exercise.

It is learnt that Johor’s investment arm will inject RM900 million worth of assets into the trust, which will be called Al Salam REIT. The listing exercise is scheduled to take place in the next six months.

The KOMTAR JBCC mall and Menara KOMTAR are some of the assets that JCorp is considering injecting into the REIT.

A source also tells The Edge that some of the shoplots rented out to fast food restaurant chain KFC and the KFCH International College building in Johor are likely to be in the REIT’s portfolio.

The Securities Commission Malaysia (SC) has approved the equity structure of the REIT and a draft prospectus exposure may be posted on its website sometime this month, adds the source.

AmanahRaya Trustee is the trustee of Al Salam REIT while Damansara REIT Managers Sdn Bhd is the manager. These two companies are also the trustee and manager of Al-‘Aqar Healthcare REIT.

A manager is appointed to administer the properties in accordance with the rules governing a REIT while the trustee acts as the custodian of the assets held by the planned REIT.

In August last year, The Edge wrote that JCorp had hired a valuer as it was exploring the possibility of listing some of its assets, including the redeveloped KOMTAR JBCC and properties owned by KFC Holdings (M) Bhd and QSR Brands Bhd.

KFC and QSR operate the Pizza Hut and KFC restaurant chains and manufacture frozen and canned food under the Ayamas brand. Both listed entities were privatised in early 2013.

KOMTAR JBCC could be the jewel in the REIT’s crown. A report in June last year pointed out that the mall was already 90% occupied. Its tenants include Southeast Asia’s Angry Birds’ Activity Park, Marks and Spencer, Sephora, Metrojaya, Padini Concept Store and Tony Roma’s. The mall boasts 405,548 sq ft of retail space and parking bays for 1,621 cars and 619 motorcycles.

Menara KOMTAR, which was upgraded recently, has a net lettable area (NLA) of 163,000 sq ft. According to JCorp’s 2013 annual report, the group anticipated 98% occupancy for the office tower.

Another asset that could be included in the REIT is Pasaraya Komunity@Mart Kempas, which, according to a 2011 report, was built at a cost of RM30 million on five hectares. Described as a hypermarket comprising a supermarket, mini-anchors, convenience stores, kiosks and stalls, it houses 175 lots and offers 150,000 sq ft of retail space, including 500 parking bays.

Industry observers say unlike Al-‘Aqar Healthcare REIT, which focuses on the hospitals assets of KPJ Healthcare Bhd, a variety of commercial assets could be injected into Al Salam REIT in the future.

KOMTAR JBCC, for example, will see the addition of another office block, called Menara Johor Land, with 347,975 sq ft of space as well as a 145,770 sq ft, four-star hotel. These two structures will be built atop the retail podium. The entire KOMTAR JBCC development will in the end offer a total NLA of 1.06 million sq ft.

Although it appears that the majority of the properties that will be in Al Salam REIT belong to Damansara Assets Sdn Bhd, it is not known if the company’s two other assets — Gallerie@Kotaraya and Pusat Perniagaan Taman Dahlia — will be injected into the portfolio. They could, nevertheless, be sold to the REIT at a later stage. DASB is a wholly-owned subsidiary of JCorp and in turn fully controls Damansara REIT Managers.

DASB owns V Square@ PJ City Centre via its wholly-owned unit Bukit Damansara Development Sdn Bhd. It had acquired the property through an asset swap with Tan Sri Desmond Lim Siew Choon’s privately owned Impian Expresi Sdn Bhd and his listed Malton Bhd.

Other assets owned by JCorp include Puteri Pan Pacific Hotel and Persada International Convention Centre.

This article first appeared in The Edge Malaysia Weekly, on April 6 - 12, 2015.

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