WCT may postpone RM2b REIT listing on cautious sentiment

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KLANG (May 19): WCT Holdings Bhd, which earlier planned to set up an estimated RM2 billion real estate investment trust (REIT) this year, may postpone the exercise until next year.

WCT (fundamental: 0.6; valuation: 2) deputy managing director Goh Chin Liong said the retail-based REIT was "unlikely" to be formed this year (2015) due to cautious market sentiment.

"I don't think it (listing of the REIT) will be this year. Everybody is cautious. We will continue to review it.

But Goh maintained that the REIT plan was still intact. He said WCT would wait for its retail malls to attain operational maturity.

According to news reports, the proposed RM2 billion REIT will enable WCT to unlock the value of its retail assets in Selangor.

The list comprises the Bukit Tinggi Shopping Centre in Klang, Paradigm Mall in Petaling Jaya and [email protected] in Sepang.

WCT is eyeing construction projects in Indonesia. Goh said WCT was keen to tap infrastructure business opportunities in Indonesia due to massive infrastructure expenditure in the neighbouring country.

He, however, said WCT had not tendered for any projects there yet. "We have just begun exploring Indonesia," he said.

At 12.30pm, WCT shares settled flat at RM1.82 for a market value of RM1.96 billion. The stock had fallen 14% this year, underperforming the FBM KLCI's 3% rise.

(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.)