CapitaLand Ltd, Southeast Asia’s largest real estate player, may delay the launch of its retail property trust in Malaysia if market conditions take a turn for the worse.

The company had earlier announced its plans to launch a real estate investment trust (REIT) by the end of this year or early next year. The REIT, worth in excess of S$837 million, will include Sg Wang Plaza in Kuala Lumpur, Gurney Plaza in Penang and Mines Shopping Fair in Seri Kembangan, Selangor.

President and chief executive officer Liew Mun Leong said the company targets to get approval for the REIT by the fourth quarter of 2008 and will “pull the trigger” when the market permits. However, the launch may be delayed if the market weakens.

CapitaLand also plans to buy more properties in Malaysia and plans to fund the acquisitions with proceeds from the sale of its 30 per cent stake in Menara Citibank in Kuala Lumpur. Liew added it may also build new malls and buildings.

According to Liew, the company will seek properties within its five strategic business units, namely residential, commercial, retail/financial, integrated leisure, entertainment and conventions, and The Ascott Group. He added that CapitaLand will build its retail portfolio and will inject them into the REIT when it sees promising returns.