Petroliam Nasional Bhd., Malaysia’s state oil and gas company, plans to combine all its stakes in Kuala Lumpur’s 88-floor Petronas Twin Towers into a real estate investment trust to be formed by KLCC Property Holdings Bhd. (KLCC), two people familiar with the matter said.
KLCC Property will buy the remaining 49.5 percent stake in the towers it doesn’t already own from KLCC (Holdings) Sdn. for 2.86 billion ringgit ($938 million), the people said, asking not to be identified. The developer then plans to fold the office and shopping complex and two other Kuala Lumpur buildings into a trust called KLCC REIT, they said.
KLCC Property is 52.6 percent owned by Petroliam Nasional, according to data compiled Bloomberg. KLCC (Holdings) is a wholly owned unit of the state energy company, according to its website.
KLCC Property, which has surged 77 percent this year in Kuala Lumpur, suspended its shares from afternoon trading today pending a “material announcement.” The company said in June that it may form a property trust to boost shareholder value.
Hashim Wahir, KLCC Property’s chief executive officer, didn’t respond to message left with his secretary today seeking comment on the transaction. A statement will be released this evening, said a company spokeswoman who asked not to be named.
The other two buildings that will be included in KLCC REIT are the Menara 3 Petronas and Menara ExxonMobil towers, the people said. KLCC REIT will be stapled to KLCC Property’s existing shares, and the new security will trade under the name KLCC Stapled Security, they said.
KLCCP Stapled Security will have assets of more than 15 billion ringgit, according to the people. That would make it more than three times bigger than IGB Real Estate Investment Trust, whose 4.7 billion ringgit of assets at the end of 2011 made it Malaysia’s largest property trust.
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