21/6/06 9The Edge Daily)  -  Boustead Holdings Bhd group is setting up an Islamic real estate investment trust (I-REIT) to be listed on the Main Board involving some of its oil palm estates and mills with a total value of up to RM570 million.

In a statement on June 21, Boustead said its subsidiary Boustead Properties Bhd's portion of the assets to be disposed of for the REIT would amount to about RM330 million.

“The Proposed Boustead I-REIT will enable the group to realise the fair value of its investments in the plantation assets while retaining productive use of the assets by way of the proposed leaseback arrangement,” he said.

Boustead said it would also allow the group to participate in the local real estate investment market through its proposed holdings in the units and its involvement in the management of the Boustead I-REIT.

Affin Bank Bhd and Pacific Alliance Capital Sdn Bhd have been mandated by Boustead to act as Joint Advisers for the proposed REIT.