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PETALING JAYA: MTrustee Bhd, the trustee of Pavilion REIT, has entered into a conditional sale and purchase agreement to acquire Pavilion Bukit Jalil from Regal Path Sdn Bhd for RM2.2 billion.

Pavilion REIT Management Sdn Bhd (the manager) also proposes to undertake a private placement exercise to raise up to RM1.27 billion, with the issue price to be determined later through a book-building exercise.

The proposed acquisition is expected to be completed in the second quarter of 2023 whereas the proposed placements are expected to be implemented in tranches.

This will enlarge Pavilion REIT’s 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.

Following the resumption of economic activities and expectation of better employment opportunities post Covid-19 pandemic, the proposed acquisition is expected to contribute positively to Pavilion REIT’s future growth, adding an additional 27% to its enlarged total assets under management.

The manager CEO Datuk Philip Ho said the retail industry is expected to stay 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 added.

Completed a year ago, Pavilion Bukit Jalil has a net lettable area of 1.8 million sq ft on a 28-acre freehold plot. The last six months saw it recording an average of 1.2 million monthly footfall with an occupancy rate of 78.2%.

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