WCT defers REIT listing

PETALING JAYA: WCT Holdings Bhd will not be listing its real estate investment trust (REIT) this year, pending the outcome of its legal suit with Aeon Co (M) Bhd, but is hopeful for a listing next year, said WCT director of corporate strategy Ng Chee Kiet.
“The plan (to list) is still ongoing. But we have deferred it pending the Aeon case. It will not happen this year. Hopefully (next year),” Ng told reporters after its AGM today.
WCT’s unit Gemilang Waras Sdn Bhd was sued by Aeon last year over the renewal of its lease for Aeon Mall Bukit Tinggi, as Aeon sought court intervention to stop Gemilang Waras from terminating the lease agreement dated Nov 23, 2007 and evicting the company or its tenants from Aeon Mall Bukit Tinggi.
The Kuala Lumpur High Court had delivered its judgement on April 27, 2018 in favour of Gemilang Waras but Aeon intends to appeal. WCT had initially set the timeline for its REIT listing at the end of 2017.
Meanwhile, WCT does not see any impact on its existing contracts following the change in the government, adding that there will be no major shift in its strategy.
Jobs clinched by WCT include the LRT3 contract packages but Ng said that it is not involved in the MRT3 project delivery partner tender. The project was scrapped by the government.
“The existing order book of over RM5 billion should last us for the next two or three years. That will give us earnings for the next three years,” said Ng.
He said WCT has a tender book of over RM5 billion mainly for projects in Malaysia, where 30-40% are infrastructure jobs. On tendered projects that may be subject to reviews, Ng said there is no indication from the project owners so far.
“We also have to wait for things to settle. It’s too soon to push them for any decision. About 60% of our tender is in the building segment. This year we’re more hopeful to secure the building jobs,” said Ng.
He added that construction will still be the main earnings driver for the group this year. The group’s engineering and construction segment accounted for 73% of the group’s revenue last year. “We still continue to see construction driving the profit.”
On its acquisition of Subang Skypark, Ng said WCT is trying to improve the tenancy mix at the airport and intends to expand the capacity next year, but added that there are no details yet.