Malaysia is the first country in Asia after Australia to introduce listed property trusts to encourage small investors to invest in the local property sector. In 1989, the Amanah Harta Tanah PNB debuted on Bursa Malaysia as the first listed property trust in Malaysia, with the Amanah Harta Tanah PNB 2 and Arab Malaysian First Property Trust after it. However, these three listed property trusts did not manage to garner much investor interest due to restrictive rules and low growth.
The Malaysian REIT market has seen tremendous achievements over the last ten years. Today we have a total of 15 REITs with a total market capitalization of RM38 billion and a total asset size of RM49 billion.
In order to move forward and instead of a traditional organic growth in its participation in this highly competitive real estate sector, KAPB has chosen to proceed with its ambition to participate its investment in the property sector thru a real property investment, Real Estate Investment Trust (REIT).