Giant TMC Completes $101 Million Sale Leaseback of Store Portfolio

Business Times (Malaysia) - December 2, 2005

The Employees Provident Fund (EPF) has bought all properties owned by hypermarket operator Giant TMC Bhd for RM382 million ($101 million). Giant, which has yearly retail sales of RM3 billion ($795 million), is a wholly-owned subsidiary of Hong Kong's Dairy Farm International Holdings Ltd. Under the agreement, EPF will buy all of Giant’s shares in its property subsidiary, Hartanah Progresif Sdn Bhd.

Hartanah Progresif holds all of Giant-owned properties comprising four hypermarkets, four supermarkets, 42 small shoplots and hostels and three vacant pieces of land. The properties will then be leased back to Giant for the next 10-15 years to ensure recurring income for the EPF. “The property investment gives a yield of 7.5 percent, which is more than the real estate investment trusts (REITs) return,” said Dairy Farm Giant Retail Sdn Bhd CEO John Coyle. REITs currently give a return of between 6 and 7 percent. Sphere: Related Content