KUALA LUMPUR (July 23): MRCB-Quill Real Estate Investment Trust (REIT) has applied for a six-month extension to carry out the issuance of 18.62 million new units as payment of management fees in relation to its acquisition of Platinum Sentral.

In a filing with Bursa Malaysia, MRCB-Quill REIT (fundamental: 0.05; valuation: 1.2) said Bursa Malaysia had vide a letter dated Feb 16, 2015 approved the listing of the new units, which must be completed within six months from the approval date, failing which it will lapse.

MRCB-Quill REIT said it is requesting for an extension to Feb 15, 2015 from Aug 16, 2015 to implement the listing of shares.

MRCB-Quill REIT did not provide reasons for the required extension or delay in the issuance of the shares.

On April 10, 2014, the REIT, then known as Quill Capita Trust (QCT) REIT, had signed a sale and purchase agreement to acquire Platinum Sentral for RM750 million from MRCB Sentral Properties Sdn Bhd, a wholly-owned subsidiary of Malaysian Resources Corporation Bhd (MRCB).

The purchase of Platinum Sentral was to be partially settled through the issuance of 206.25 million QCT units at RM1.28 per unit — which will see MRCB come away with a 41% stake in Quill Capita Management Sdn Bhd, the manager of QCT — and the balance RM486 million was to be settled via cash that will be raised through a combination of equity and debt funding exercises.

The equity funding exercise would entail a proposed placement of between 55 million and 85 million new REIT units.

MRCB-Quill REIT shares closed 2 sen or 1.71% higher at RM1.19, with a market capitalisation of RM787.04 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)