National oil firm Petronas will list its unit KLCC Property Holdings, which owns Kuala Lumpur's landmark twin tower development and has assets worth more than RM7.54 billion, a report said today.

President and chief executive Hassan Merican told the New Straits Times that the listing would transform KLCC into one of Asia's premier property companies.

Its asset value could be further boosted once Petronas consolidates its 64.5 percent stake in Putrajaya Holdings, which manages the government administrative centre, and the RM600-million KLCC Convention Centre now under construction, into KLCC Property, he said.

"Of course, unlocking the value of the assets is a natural reason for the listing ... it can, perhaps, also help stimulate the local stock exchange," said Hassan.

The initial public offering (IPO) will involve 25-30 percent of KLCC Property depending on demand during the book-building process, with 430 million shares to be offered for sale, he said.

He declined to give details on the annual revenue the properties generate, saying only they offered KLCC Property "very good returns that run into several hundred millions a year."

Higher value for the towers

Petronas first considered the listing of its property assets as early as 1996 but shelved the plan following the 1997-98 Asian financial crisis. The idea was revived late last year and the prospectus for the IPO is now pending approval from the Securities Commission (SC).

"The listing will be dependent on when we receive the SC's approval, as well as favorable market conditions," Hassan added.

The newspaper said the main asset of KLCC Property was Midcity Resources, which owns 50.5 percent of Petronas Twin Towers, while Petronas owns the rest.

The 88-floor twin towers were built almost a decade ago at a cost of about RM1.2 billion but were now valued at RM4.5 billion and are 87 percent occupied, it said. Other assets include a 75 percent stake of the Mandarin Oriental hotel and a 60 percent stake in the Suria KLCC shopping complex around the towers. - AFP