Pavilion REIT calls off placement exercise

PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion REIT) has decided not to proceed with its placement exercise after taking into consideration the prevailing market price performance of the units as well as the debt funding option and capacity available to the group.
Last year, Pavilion REIT Management Sdn Bhd, the management company of Pavilion REIT, had proposed to undertake the proposed placement of up to 218 million new units in Pavilion REIT, representing up to about 7.2% of the total units in circulation, to partly fund the proposed acquisition of Elite Pavilion Mall for RM580 million cash.
In light of the new development, the proposed acquisition will be fully funded via borrowings.
Pavilion REIT's share price fell 1 sen or 0.7% to close at RM1.37 on some 250,300 shares done.