“WCT shareholders approve Paradigm REIT listing and RM2.44b retail asset transfer. IPO includes retail and institutional offerings; REIT targets Bursa debut.“
Kuala Lumpur, 10th Apr 2025, 01.00pm – WCT Holdings Bhd has received shareholder approval to proceed with the listing of its Paradigm Real Estate Investment Trust (Paradigm REIT) on the Main Market of Bursa Malaysia, a strategic move aimed at unlocking asset value and enhancing its capital structure.
At its extraordinary general meeting (EGM) on Wednesday, shareholders also approved the disposal of three major retail assets — Bukit Tinggi Shopping Centre (BTSC), Paradigm Mall Petaling Jaya (PMPJ), and Paradigm Mall Johor Bahru (PMJB) — to Paradigm REIT in a RM2.44 billion transaction.
The acquisition will be settled through the issuance of 1.6 billion units in Paradigm REIT at RM1 per unit and a cash consideration of RM837 million, funded via commercial real estate-backed medium-term notes.
Strategic Transformation for WCT
WCT said the proposed listing aligns with its long-term strategy to strengthen its balance sheet, reduce debt, and enhance financial flexibility to pursue new growth opportunities.
“This milestone allows us to unlock the value of our retail portfolio while offering investors access to a diversified and income-generating REIT platform,” said WCT managing director Datuk Lee Tuck Fook.
“We are confident that Paradigm REIT will become a strong addition to Bursa Malaysia, delivering sustainable distributions and long-term capital appreciation,” he added.
Details of Asset Injection
The initial portfolio comprises three major retail assets:
- BTSC: Acquired from wholly-owned subsidiary Gemilang Waras Sdn Bhd for RM680 million (RM350 million in REIT units, RM330 million in cash).
- PMPJ: Acquired from Jelas Puri Sdn Bhd, a 70%-owned JV, for RM600 million (RM230 million in units, RM370 million in cash).
- PMJB: Acquired from WCT Hartanah Jaya Sdn Bhd for RM1.16 billion (RM1.02 billion in units, RM137 million in cash).
Retail and Institutional Offering
Shareholders also approved the offering of up to 560 million Paradigm REIT units, including:
- A retail tranche of up to 254.66 million units, with 194.86 million units allocated to WCT shareholders on the basis of 1 offer unit for every 8 existing shares.
- An institutional tranche of at least 305.34 million units, including 200 million units reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry, and the remaining units for selected and institutional investors.
WCT, which operates across engineering, construction, property development, and retail investment, said the listing will offer investors direct exposure to Malaysia’s growing retail REIT sector.
Shares of WCT ended 5.04% lower at 56.5 sen on Wednesday, valuing the company at RM927.6 million.
