KUALA LUMPUR – Pavilion Real Estate Investment Trust (Pavilion REIT) has issued a circular to seek approval from Pavilion REIT’s non-interested unitholders for the acquisition of Pavilion Bukit Jalil (PBJ Mall) for RM2.2 billion.
The proposed acquisition will be discussed at the extraordinary general meeting to be held on March 22, the company said in a statement today.
“The proposed acquisition of PBJ Mall aligns with Pavilion REIT’s strategy to expand its portfolio of prime retail assets in Malaysia to six from its current portfolio that consists of Pavilion Kuala Lumpur Mall, Elite Pavilion Mall, Intermark Mall, Da Men Mall and Pavilion Tower,” it added.
Pavilion REIT’s manager chief executive officer Datuk Philip Ho said the acquisition is accretive to the REIT’s distributable income and would have a favourable impact on its total portfolio and future expansion.
“Pavilion REIT Management Sdn Bhd is the manager of Pavilion REIT.
“The acquisition of PBJ Mall is expected to contribute positively to Pavilion REIT’s future growth, enlarging its portfolio base to RM8.3 billion from RM6.0 billion previously,” said Ho.
To recap, MTrustee Bhd, the trustee of Pavilion REIT, has signed a conditional sale and purchase agreement to acquire PBJ Mall with all related assets and rights from Regal Path Sdn Bhd, a wholly-owned subsidiary of Malton Bhd, for RM2.2 billion.
Over the past six months, PBJ Mall recorded an average of 1.4 million monthly footfall and as at February 28, the occupancy rate for PBJ Mall is approximately 81.4%. – Bernama, March 7, 2023
