GuocoLand (Malaysia) Bhd has disposed of a 20% stake in GLM REIT Management Sdn Bhd, the manager of Tower Real Estate Investment Trust, according to filings on Bursa Malaysia on Tuesday.
Tower REIT said the stake was acquired by HL Management Co Sdn Bhd, a wholly owned subsidiary of Hong Leong Company (Malaysia) Bhd. Hong Leong Company is also the ultimate holding company of Hong Leong Bank Bhd.
Following the transaction, GuocoLand retains an 80% equity interest in GLM REIT Management.
The filing did not disclose the rationale for the partial divestment.
Tower REIT added that the Securities Commission Malaysia has approved the change in shareholding, clearing the regulatory requirement for the transaction to proceed.
GuocoLand is a subsidiary of Guoco Group Ltd, the overseas investment arm of the Hong Leong Group, which is ultimately controlled by the Kwek family.
GLM REIT Management Sdn Bhd serves as the manager of Tower REIT, overseeing its operations and strategic direction.
The divestment represents a change in the ownership structure of the REIT’s management company but does not affect the listed REIT itself.
Market reaction was muted, with Tower REIT closing unchanged at 30 sen on Tuesday, valuing the company at RM147.3 million. GuocoLand also ended the session flat at RM1.09, giving it a market capitalisation of RM763.5 million.
