Finance Malaysia Blogspot: (IPO Listing) Paradigm REIT ~ Largest REIT IPO in 13 years!

24 May 2025

(IPO Listing) Paradigm REIT ~ Largest REIT IPO in 13 years!

Are you anticipating with this one of the largest IPOs in Malaysia for 2025? Somemore, this is a REIT, which is deemed appealing for yield-seeking investors.

Upon listing, scheduled for June 10, 2025, it is expected to achieve an estimated market capitalisation of RM1.6 billion based on the illustrative issue price of RM1 per offer unit and a total listing of 1.6 billion units.

Its fact sheet states Paradigm-REIT will have an annualised distribution yield of 7.16% in the projected financial year 2025 (FY25).

Key information about Paradigm REIT:

Paradigm REIT will be backed by 3 key assets, namely:

Bukit Tinggi Shopping Centre

BTSC is a retail mall comprising 3 levels of retail area with a mezzanine floor and car park facilities at the surface, basement, elevated and rooftop level(s). It was opened in 2008, located at Klang, Selangor, with a total GLA of 1,000,950 sq ft. and is currently solely leased to AEON Co. (M) Bhd.
Paradigm Mall Petaling Jaya

Opened in 2012, PMPJ had 680,048 sq ft of net lettable area as at March 31, and is part of the integrated commercial development located within Kelana Jaya in Petaling Jaya. The mall was attached to Le Meridien Petaling Jaya and The Azure Residences.
Paradigm Mall Johor Bahru

Opened in 2017, PMJB is the largest shopping mall in Iskandar Malaysia and had around 1,292,956 sq ft of NLA as at March 31 and is a 20-minute drive from the Woodlands Checkpoint of Singapore, encouraging foot traffic from Singaporean tourists.

Bukit Tinggi Shopping Centre

Paradigm Mall Petaling Jaya

Paradigm Mall Johor Bahru

The REIT is exposed to various growth markets across numerous townships with good catchment, well-developed infrastructure and various amenities. The REIT has 723 tenants, excluding BTSC’s ancillary area, which comprise well-established international and domestic retailers.

Paradigm REIT’s key investment highlights are as follows:

Geographically diversified portfolio with strategically located assets
Diversified and quality tenant base
Resilient trade sectors
Well-staggered lease expiry profile
Increasing rental rates underpinned by high occupancy
Acquisition growth opportunities
Embedded upside potential to be realised through active asset management and enhancement
Experienced management team
Management fees structure aligns the Manager’s interest with Unitholder
Positioned to capitalise on positive macroeconomic and strong private consumption trends in Malaysia

Looking ahead, Paradigm REIT plans to drive long-term growth by prioritizing the acquisition of quality assets from its parent company, WCT Holdings Bhd. It poised to acquire some hotel assets which are in the vicinity of its mall assets in the trust.

“We are looking to do this as early as 2026 to inject these three hotels and then potentially 2027 or 2028 for the gateway@klia2 mall asset,”