Pavilion REIT buys mall in USJ

PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion REIT) is buying a five storey shopping mall in USJ, Subang Jaya for RM488 million.
In a stock exchange filing yesterday, Pavilion said that it had entered into a conditional sale and purchase agreement via its trustees, AmTrustee Bhd, with Equine Park Country Resort Sdn Bhd (EPCR) and Revenue Concept Sdn Bhd for acquisition of the mall known as da:mén USJ.
Pavilion REIT expects the acquisition to be completed by the first quarter of 2016 and “will be accretive to Pavilion REIT’s distributable income”.
Pavilion REIT said that the acquisition will be fully funded by debt borrowings, which will increase its gearing ratio from 15% as at June 30 to 23%.
“Besides providing geographical diversification to Pavilion REIT’s portfolio of investment properties, upon completion the proposed acquisition will enlarge Pavilion REIT’s portfolio from RM4.4 billion as at June 30 to RM4.9 billion,” it said.
The shopping mall has a net letteable area of 420,920 sq ft with two levels of basement car parks with 1,672 bays.
The mall is expected to begin operation in November with a trade mix of food and beverage, beauty and fashion.