Monday, October 29, 2012
Starhill Global Reit
Starhill Global Reit: in an interview with Msia’s The Star, group MD Francis Yeoh said the YTL group is eyeing more shopping centres in China to be injected into SG Reit, and hopes that with the latest downward adjustment to China's economic growth, a few good deals could come along for the company. At present, the YTL group only has one shopping mall in Chengdu, China parked under SG Reit. Mr Yeoh's aim is for the YTL group to have its retail footprint occupying a third of the prime streets in every city in China just like it has in Bukit Bintang (Kuala Lumpur), Orchard Road (Singapore) and Perth (Australia). Adds, the YTL group will bank on its close partnership with the three biggest players in the luxury world - LVMH Group, Pinot Noir and Swatch to expand in the premium retail space. Nevertheless, Mr Yeoh of concern is the ongoing QE measures, which have resulted in massive liquidity flooding the system, and could push up asset prices, particularly those in the Asian region. Says the group would need to have the discipline to wait for the right opportunity; overpriced assets will eventually correct. SG Reit's portfolio currently comprises 13 prime retail and commercial properties in Malaysia, Singapore, Australia, Japan and China. These are valued at ~$2.7b. Mr Yeoh’s target is to grow the value of the portfolio by 10 fold. The other Reit under YTL's stable is the Malaysia-listed Starhill Reit whose portfolio comprises prime hotel and hospitality-related properties in Malaysia and Japan as well as newly acquired ones in Australia. SG Reit is flat at $0.785.