Sunway establishes private trust for student housing in UK

KUALA LUMPUR (Oct 16): Sunway Bhd is establishing a private trust in Singapore with an initial £38 million (about RM202 million) of assets under management (AUM) that focuses on purpose-built student accommodation in the UK.

In a filing with Bursa Malaysia today, Sunway said its unit Sunway RE Capital Advisors (SG) Pte Ltd had executed a trust deed with RBC Investor Services Trust Singapore Ltd. “Sunway RE Capital Advisors (SG) Pte Ltd  (SG Fund Manager) will act as a fund manager for the Trust in Singapore while RBC Investor Services Trust Singapore Ltd will act as trustee for the Trust.”

Called Sunway Residence Trust, the Trust will acquire purpose-built student accommodation in the UK via a special purpose vehicle to be set up in Guernsey. Upon the acquisition, the SG Fund Manager will establish a fund manager in the UK to provide fund management services and appoint an operator to manage the properties.

“The purpose of the Trust is to invest in high quality, well located student accommodation with potential for long-term capital appreciation and sustainable income that will be yield accretive to the portfolio,” Sunway said, adding the fund management platform will also generate recurring management fees over time.

Sunway said the establishment of the Trust will not have any effect on its share capital and substantial shareholders’ shareholding as it does not involve any allotment or issuance of new Sunway shares.

Sunway closed unchanged today at RM1.69, valuing the company at RM8.21 billion. Over the past year, the stock has gone up by 25% from RM1.35.