KUALA LUMPUR: Tower Real Estate Investment Trust (REIT) is planning a listing on Bursa Malaysia based on the investment portfolio of two prime properties in Kuala Lumpur.

Aiming for a main-board listing next month, Tower REIT expected to raise more than RM200mil from the exercise, said Tan Ming Huat, chief executive officer of GLM REIT Management, the REIT's manager.

The two properties for Tower REIT are Menara HLA and HP Towers.

''The listing is timely in line with better outlook for the commercial property market and tax incentives for REIT as announced by the Government last year,'' Tan said in an interview. ''We will utilise the listing proceeds to pay for the two buildings we had bought.''

GLM REIT Management is wholly owned by Guoco Land Malaysia Bhd, a public-listed company, which is a member of the Hong Leong Malaysia group.

''Based on the current property market scenario, the dividend yield based on other listed REITs is expected to be between 6% and 7%, higher than the current market yield for the 10-year Malaysian Government Securities,'' Tan said.

According to Tan, the market value of Menara HLA is RM228mil and HP Tower RM135mil.

''We are looking for new properties in the Klang Valley to expand our investment portfolio,'' Tan said.

Tower REIT is expected to issue its prospectus next week.

Source : The Star 15/3/2006