[%THFj%] 
Research by Public 
Neutral – TP RM1.08

"Update on Paradigm REIT”

WCT Holdings Bhd (WCT) has proposed a disposal of three retail properties for RM2.44bn to a newly established real estate investment trust (REIT) named Paradigm REIT, which will be listed on the Main Market of Bursa Malaysia. The transaction will be settled through RM837m in cash and 1.6bn units in Paradigm REIT. Proceeds from the proposed REIT establishment and proposed offering will primarily be used to reduce the Group’s borrowings, with the Group's gearing expected to improve to 0.33x from 0.72x previously. While we are positive on this, we keep our forecasts unchanged pending the listing of Paradigm REIT. We maintain our Neutral call on WCT with an unchanged TP of RM1.08. 

Analyst:  
Denny Oh
[%RyKC%]

$KLSE-WCT 
Research by Public 
Neutral – TP RM1.08

"Update on Paradigm REIT”

WCT Holdings Bhd (WCT) has proposed a disposal of three retail properties for RM2.44bn to a newly established real estate investment trust (REIT) named Paradigm REIT, which will be listed on the Main Market of Bursa Malaysia. The transaction will be settled through RM837m in cash and 1.6bn units in Paradigm REIT. Proceeds from the proposed REIT establishment and proposed offering will primarily be used to reduce the Group’s borrowings, with the Group's gearing expected to improve to 0.33x from 0.72x previously. While we are positive on this, we keep our forecasts unchanged pending the listing of Paradigm REIT. We maintain our Neutral call on WCT with an unchanged TP of RM1.08. 

Analyst:  
Denny Oh
Oh.BoonYeow@publicinvestbank.com.my