Sentral REIT was on Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 8 January 2020. It debuted on Bursa Securities as Quill Capita Trust and was renamed MRCB-Quill REIT 2 April 2015 following the change in sponsors. Subsequent to a rebranding exercise, it changed its name on [date].
Sentral REIT provides its unitholders a unique opportunity to participate in the growth of commercial property market in Malaysia. Sentral REIT owns and invests in quality income-producing assets primarily used for commercial (including retail and/or office) purpose, located predominantly in Malaysia. It has a portfolio of 10 properties that are located in the Klang Valley, Cyberjaya and Penang. Click here for a full list of our property portfolio.
The trust was constituted by a trust deed and is principally regulated by applicable securities laws, the SC’s Guidelines on Listed REITs, the Listing Requirements of Bursa Securities, the rules of the depository and relevant taxation laws and rulings. Please refer to its Trust Structure for further details on how the trust is operated.
Sentral REIT is managed by Sentral REIT Management Sdn Bhd (the “Manager”). The shareholders of the Manager comprise of Malaysia Resources Corporation Berhad (“MRCB”), Quill Resources Holding Sdn Bhd and Global Jejaka Sdn Bhd with shareholdings of 41%, 39% and 20%, respectively.
The investment objective of Sentral REIT is to acquired and invest in commercial properties primarily in Malaysia with a view to provide long-term growth and sustainable distribution of income to unitholders and to achieve long-term growth in the net asset value per unit of Sentral REIT.
The investment objective will be achieved through the following strategies:
Acquisition Growth and Portfolio Management Strategy
Selective and prudent acquisition of additional properties that meet our investment criteria to enhance yields and returns while improving portfolio diversification.
- Capitalise on strengths of two (2) of Sentral REIT sponsors. We will pursue acquisitions of suitable assets from third parties as well as leverage on the strengths and network of our sponsors.
- Acquisitions. We will embark on an acquisition strategy to make acquisitions of commercial properties in Malaysia to grow and diversify Sentral REIT’s initial portfolio. We will continue to actively explore acquisition opportunities that would enhance the quality of Sentral REIT’s portfolio and generate higher returns to unitholders. The focus is on good quality properties with strong recurring rental income and potential for revenue and capital growth.
- Portfolio Management. We intend to hold Sentral REIT’s investments on a long-term basis. However, at the appropriate time, we will recommend an adjustment of the portfolio mix through acquisition or sale of one or more of the Authorised Investments or commercial properties with the objective of maximising total returns to unitholders. The proceeds from such a sale would be either redeployed to purchase other attractive Authorised Investments or, in the absence of appropriate investments, distributed to unitholders.
Active Asset Management Strategy
We intend to implement strategies with the objective of enhancing the attractiveness of Sentral REIT’s existing commercial space and correspondingly maximising returns through increased net property yields, via active asset management.
We intend to increase the property yield of existing commercial space and correspondingly maximising returns from the existing commercial space by implementing the following:
- Maximising tenant retention;
- Diversifying tenant base;
- Proactive marketing plans;
- Continued minimisation of property expenses; and
- Undertaking asset enhancement
Capital Management Strategy
We aim to optimise Sentral REIT’s capital structure and cost of capital within the borrowing limits set out in the REIT Guidelines and intend to use a combination of debt and equity to fund future acquisitions and improvement works.
Our capital management strategy involve:
- Adopting and maintaining an optimal gearing level; and
- Adopting an active interest rate management strategy to manage the risks associated with changes in interest rates.