April 21, 2011 / 7:13 AM / 9 years ago

Japan quake delays IPO of world's largest sharia REIT-source

April 21 (Reuters) - Malaysia’s Axis REIT Management Sdn Bhd has delayed the listing of the world’s largest sharia-compliant real estate investment trust (REIT) by a month after the Japan earthquake damaged several buildings in the REIT’s portfolio, a source with direct knowledge of the plan told Reuters.

According to the source, two of the Japanese properties, valued at 1.8 billion yen ($21.8 million) included in the portfolio were badly affected by the quake, and have now been removed from the REIT’s initial asset composition.

This could result in a slight reduction in the amount to be raised from the listing which initially targeted 2.1 billion ringgit ($696 million), said the source, who was not authorised to speak to media

Axis REIT Management, which also manages Axis REIT , is planning to list Axis Global Industrial REIT, valued at over 3 billion ringgit to meet demand for new Islamic finance products. [ID:nL3E7EB0Y1]

The IPO has been set at an indicative price range of 1.00-1.05 ringgit ($0.329)-($0.345) a unit, two sources who have seen the information memorandum had told Reuters. [ID:nL3E7EE0NW] ($1 = 3.016 Malaysian Ringgit) ($1 = 82.465 Japanese Yen) (Click on [ID:nISLAMIC] for more Islamic finance stories and for a speed guide) (Editing by Liau Y-Sing and Lincoln Feast)

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