MEDIA group Singapore Press Holdings will be spinning off a real estate investment trust (reit) of its retail malls, it announced Monday evening.

It has received a listing eligibility from the Singapore Exchange.

Chief executive Alan Chan said: "We plan to inject Paragon and The Clementi Mall into SPH Reit."

SPH is expected to hold about 70 per cent of the units in the Reit, and plans to declare a special dividend of 18 cents.

SPH's key property asset is Paragon shopping mall, which was valued at $2.43 billion as of last August.

SPH also has a 60 per cent stake in The Clementi Mall and a 70 per cent share of Seletar Mall, which is slated for completion by the end of next year.

In mid-March, SPH shares surged to their highest levels in five years after the group said it is exploring setting up a Singapore-listed Reit. The counter gained 35 cents, or 8.39 per cent, for the week to end at $4.52 on March 15.

Today, they closed two cents higher to $4.39, before the announcement was made.