QCT’s fund size expected to double by year-end
Posted on | August 10, 2007
By THE EDGE
KUALA LUMPUR: Quill Capita Trust’s (QCT) fund size is expected to increase up to 490.13 million units by year-end from 238.69 million units as its manager Quill Capita Management Sdn Bhd (QCM) injects more assets into QCT.
QCM director Datuk Michael Ong said unitholders approved its proposals to increase QCT’s fund size to a maximum of 490.13 million units and the placement of up to 251.44 million new units in several tranches as well as amendments to the deed of trust at a meeting here yesterday.
Speaking to reporters later at the underwriting ceremony for the placement of up to 151.44 million new units, he said the approval would facilitate its proposed acquisitions of Wisma Technip and part of Plaza Mont Kiara for RM125 million and RM90 million respectively.
“With the completion of the proposed acquisition, QCT will achieve geographical diversification by expanding its portfolio beyond Cyberjaya into the greater Klang Valley.
“In the same stroke, income sources will also be diversified with the enlarged tenant base,” Ong said, adding that both Wisma Technip and Plaza Mont Kiara, with their high occupancy rate and long-term tenancies, would account for 38% of QCT’s total net lettable area.
On the private placement of the 151.44 million new units, he said it was expected to raise gross proceeds of up to RM277.16 million to finance the acquisitions of Wisma Technip and part of Plaza Mont Kiara and to fund its other capital expenditure, working capital and related expenses.
The exercise would also lower QCT’s gearing to 0.17 times from the current 0.31 times and enhance its ability to borrow again to finance future acquisitions, Ong added.
Aseambankers Malaysia Bhd and Hwang-DBS Investment Bank Bhd are the joint managing underwriters for the private placement. The other underwriters are MIDF Amanah Investment Bank Bhd and Alliance Investment Bank Bhd.
Together, they will underwrite 60.58 million new units or 40% of 151.44 million units while Singapore’s CapitaLand and Quill groups will subscribe to the remaining 90.86 million units.
Meanwhile, QCM chief executive officer Chan Say Yeong said the acquisitions of Wisma Technip and part of Plaza Mont Kiara would help QCT to achieve about 80% of its target to double its fund size by year-end.
The company was also negotiating with several other parties to acquire more assets in the Klang Valley to be injected into QCT, he added.
Chan said while QCM’s focus was commercial buildings, it would also look at a mixed development with a retail centre that caters to those working in the same building. “We are not interested to go into shopping mall management,” he added.
Chan said there was a shortage of commercial space in the Klang Valley as developers had built fewer of such buildings since the 1997/1998 Asian financial crisis.
“Vacancy rate has gone down and occupancy rate has gone up. Prime Grade A buildings in the Klang Valley are at least 95% occupied,” he added.
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