Over the last couple of years, GuocoLand Malaysia has sold assets such as Eco-World International and the Thistle Johor Bahru hotel. However, it is still holding to a "significant" landbank in Malaysia that will come in useful to line its development pipeline.
GuocoLand's privatisation bid of its KL-listed subsidiary GuocoLand (Malaysia) may raise questions over the rationale, given that this move is "inconsistent" with its earlier divestment of properties in Malaysia.
However, DBS Group Research suggests that this latest development is part of a longer-term plan that will give GuocoLand more room to spin off a Singapore-focused REIT without being "excessively hollowed out".
