Islamic REIT Shortage Seen Boosting Demand for Johor’s New Trust
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Demand for Malaysian Islamic real-estate investment trusts may withstand a sluggish property market as their steady rental income is popular with pension funds amid a shortage of Shariah-compliant assets.
Johor Corp., the investment company of the country’s southern Johor state, plans to list the 900 million ringgit ($249 million) Al-Salam REIT, Kamaruzzaman Abu Kassim, the company’s president, said in an e-mail interview Tuesday. The prospectus will be registered by July and the trust expects to deliver returns of around 6.3 percent in 2016, he said.