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A Quick Introduction To IGB Real Estate Investment Trust

In one of our previous articles here, we looked at a Malaysian REIT called CapitaLand Malaysia Mall Trust (KLSE: 5180) which is related to CapitaLand Limited (SGX: C31).

For investors who enjoyed the previous article, this is a follow up where we will introduce to our readers at another Malaysia based REIT, which is IGB Real Estate Investment Trust (KLSE: 5227).

A brief introduction

IGB REIT is one of the biggest retail focused REIT in Malaysia. It owns two properties – Mid Valley Megamall (MVM) and The Gardens Mall (TGM). Both properties are located next to each other.

For those who live in Kuala Lumpur, Malaysia, these two malls will be familiar to them, especially Mid Valley. It’s one of the most visited malls in the country despite it being relatively “old”. According to IGB website, Mid Valley was launched in 1995.

Below are some photos from its website:

Source: IGB REIT website

Trust structure

Next, we will have a quick overview of the trust’s structure.

Source: IGB REIT 2016 Annual Report

Here, we can see that IGB REIT is majority owned by IGB Corporation (52.4%), who is also the sponsor of the REIT.

The manager of the REIT is IGB REIT Management, which is 100% owned by the REIT’s sponsor.

Here, it is interesting to see that the sponsor retains a majority stake in the REIT, which might indicate the attractiveness of the underlying assets.

Conclusion

If you are looking for Malaysian REIT with retail exposure, then IGB REIT is one that should not missed in your search process.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.