Pavilion REIT is seeking to raise up to MYR1.27 billion via a private placement exercise to fund the acquisition of a five-storey mall in Bukit Jalil, Kuala Lumpur.
The REIT has entered into a conditional sale and purchase agreement to acquire the mall, Pavilion Bukit Jalil, from Regal Path Sdn Bhd for MYR2.20 billion.
The asset has a net lettable area of 1.8 million square feet, five levels of retail space, and two levels of basement parking with 4,800 car park bays.
The acquisition will enlarge Pavilion REIT’s portfolio of assets to six, from the current line-up that comprises Pavilion Kuala Lumpur Mall, Pavilion Tower, Intermark Mall, DA MEN Mall and Elite Pavilion Mall.
“This proposed acquisition is timely following the resumption of economic activities and expectation of better employment opportunities post COVID-19 pandemic”, said the REIT in its statement on 22 November.
Subject to condition precedents being complied with, the proposed acquisition is expected to be completed in the second quarter of 2023.
Pavilion REIT was last done on the Bursa Malaysia at MYR1.19.