KUALA LUMPUR: MTrustee Bhd, the trustee of Pavilion REIT, is buying Pavilion Bukit Jalil shopping mall for RM2.2 billion.
MTrustee today said it had entered into a conditional sale and purchase agreement to acquire Pavilion Bukit Jalil from Regal Path Sdn Bhd.
MTrustee also said that Pavilion REIT Management Sdn Bhd had proposed to undertake a private placement to raise up to RM1.27 billion.
The placement’s issue price will be fixed later through a book-building exercise.
“Subject to condition precedents being complied with, the proposed acquisition is expected to be completed in the second quarter (Q2) of 2023 whereas the proposed placements are expected to be implemented in tranches,” MTrustee said.
The acquisition will enlarge Pavilion REIT’s assets to six, from the current line-up which comprises Pavilion Kuala Lumpur Mall, Pavilion Tower, Intermark Mall, DA MEN Mall and Elite Pavilion Mall.
MTrustee said the acquisition was expected to contribute to Pavilion REIT’s future growth, adding an additional 27 per cent to the REIT’s enlarged total assets under management.
“This proposed acquisition is timely following the resumption of economic activities and expectation of better employment opportunities post-Covid-19 pandemic,” it said.
MTrustee said with a net lettable area of 1.8 million sq ft, Pavilion Bukit Jalil had rejuvenated Bukit Jalil into a vibrant destination for business, shopping, dining, leisure and entertainment on an 11.3 hectares freehold plot.
The mall houses five levels of retail space, two levels of basement parking with 4,800 car park bays and a piazza.
Completed a year ago, the last six months saw the mall recording an average of 1.2 million monthly footfall with an occupancy rate of 78.2 per cent.
Pavilion REIT Management chief executive officer Datuk Philip Ho said the retail industry was expected to stay relatively resilient for the time being, even with the environment indicating risks of higher inflation.
“With retail sales growth expected to normalise, Pavilion REIT remains committed to bringing long-term growth and value for our stakeholders”, he said.
Source: New Straits Times
