Paradigm REIT Pitches Itself as Shelter for Investors Amid Market Turmoil
16 May 2025
PETALING JAYA, 16 MAY 2025 - Paradigm Real Estate Investment Trust is pitching itself as a shelter for investors from the ongoing turbulence in the market.
Real estate investment trusts, or REITs, are aimed at defensive investors, said Paradigm REIT director of investment, finance and accounts Chong Kian Fah. REITs are often a fixed-income alternative and their returns are typically compared to fixed deposits or other low-risk assets, he noted.
“We are very confident in the listing, as REITs are considered defensive and dividend-yield play,” Chong said. "We are the umbrella for investors seeking safe and secure returns during market turbulence.”
Chong was responding to questions from reporters at the launch of its initial public offering (IPO) on Friday. Recent IPOs on Bursa Malaysia have largely flopped on their first day amid the market turmoil, prompting some companies to delay listings.
Further, some have lowered their IPO prices due to underwhelming demand from investors. Paradigm REIT’s IPO, indicatively priced at RM1 per unit, is expected to raise RM560 million for its sponsor WCT Holdings Bhd (KL:WCT).
Paradigm REIT will start off with three shopping malls, and the trust could potentially acquire four more assets, chief executive officer Selena Chua Kah Noi said at the same press conference on Friday.
The plan is to start as early as 2026 with Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Hotel, and Première Hotel followed by Gateway@KLIA Terminal 2 in 2027 or 2028, she said.
Paradigm REIT will pay out at least 90% of its distributable income, with the first payout scheduled six months after the listing date on June 10. Distributions will be made twice a year thereafter, according to its prospectus.
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