Johor Corporation (JCorp) has officially announced today the establishment of another Islamic real estate investment trusts, known as Al-Salām REIT.
The announcement was made at a signing ceremony on the establishment of Al-Salām REIT between two subsidiaries of JCorp, Damansara Assets Sdn Bhd (DASB) and QSR Brands (M) Holdings Sdn Bhd (QSRB) with AmanahRaya Trustees Berhad (ART) at the Putrajaya Marriott Hotel on 28th April 2015. The ceremony was witnessed by YAB Dato’ Mohamed Khaled Bin Nordin, Johor Chief Minister cum Chairman of JCorp, YBhg Dato’ Abdul Rahman Md Khalid, Group Managing Director of AmanahRaya Berhad and YB Dato’ Kamaruzzaman Bin Abu Kassim, President and Chief Executive of JCorp. DASB and QSRB are vendors that will sell their respective assets to Al-Salām REIT while ART is the trustee acts as the custodian of the future assets owned by Al-Salām REIT. Damansara REIT Managers Sdn Berhad (DRMSB) will be the REIT Manager of Al-Salām REIT.
Al-Salām REIT has obtained the approval for its establishment from the Securities Commission Malaysia (SC) on February 18, 2015 and was subsequently established on March 30, 2015, with the registration of the Trust Deed with the SC. Al-Salām REIT will be a diversified Islamic REIT focusing on the various Shariah-compliant assets, which consist of, amongst others, commercial retail, office and industrial assets.
The initial portfolio of Al-Salām REIT will include 31 assets with total value of approximately RM900 million which to be acquired from DASB and QSRB. Among the major assets from DASB to be acquired by Al – Salām REIT are Menara KOMTAR, @Mart hypermarket, KFCH College and KOMTAR JBCC, a new retail mall in Johor Bahru City Centre which houses reputable retailers while assets from QSRB are KFC and Pizza Hut restaurant chains nationwide and selected industrial assets. Al-Salām REIT is expected to be listed on the Main Market of Bursa Malaysia in the third quarter of 2015.
“The establishment of Al-Salām REIT is another commitment by Johor Corporation in playing its part in the world of Islamic REIT and Islamic Capital Market. Johor Corporation believes that Islamic REITs have the potential to be the preferred investment instrument among investors in the capital market” according to the President and CEO of JCorp, YB Dato’ Kamaruzzaman Bin Abu Kassim.
Al-Salām REIT is the second Islamic REIT sponsored by JCorp. In 2006, JCorp thru KPJ Healthcare Berhad has successfully listed Al-`Aqar Healthcare REIT (Al-`Aqar) on the Main Board of Bursa Malaysia. Al-`Aqar which focuses on the healthcare related assets is also being managed by DRMSB. The establishment of Al-Salām REIT will become a significant landmark in the Malaysian REIT industry of which JCorp will be the only corporation sponsoring two Islamic REITs whilst DRMSB will be the first REIT Manager manages two Islamic REITs.