KUALA LUMPUR: The largest pension fund manager in Canada will invest RM485mil for a 49% interest in its joint venture (JV) with Pavilion Group to develop Pavilion Damansara Heights – a mixed-used property in Kuala Lumpur.
This is Canada Pension Plan Investment Board’s (CPPIB) first direct real estate investment in the region.
“We are pleased to make our first direct real estate investment in South-East Asia through this JV with one of Malaysia’s most well-respected developers, the Pavilion Group.
“This JV fits well with our investment strategy, as it provides us with a great opportunity to work with a smart partner in a high-quality real estate asset that will provide attractive risk-adjusted returns over the long term,” said CPPIB managing director and head of real estate investments Asia Jimmy Phua in a statement.
The Malaysian property market is still attracting strong interest from overseas investors, despite reports suggesting a possible slowdown in demand.
Major property players from China, including Greenland Holdings Group Ltd and Country Garden Holdings Co Ltd, are among big investors in Johor.
Pavilion Damansara Heights is a freehold development integrating corporate towers, luxury residences and a retail galleria.
The development is located in one of the prime and affluent locations in Kuala Lumpur, less than 10km from the Petronas Twin Towers. It is well-connected by a network of highways and strategically served by two upcoming Mass Rapid Transit stations within walking distance to the development.
Pavilion Group is an experienced local developer of commercial and residential projects and is one of the strongest and most well-established Malaysian retail developers. It has developed several prominent retail malls, and office and retail projects in Kuala Lumpur.
“We are looking forward to the opportunity to partner with CPPIB in this exciting development in Kuala Lumpur.
“It is a highly anticipated landmark for Damansara Heights, set within Malaysia’s most affluent neighbourhood, offering a world-class integrated development that is synonymous with the Pavilion Brand,” said Pavillion Group project director Timothy Liew.
Pavilion Group was in the news recently as it had set a record of sorts for pricing its high-rise serviced residential units of its latest project – the Pavilion Suites – along Jalan Bukit Bintang starting from RM3,000 per sq ft.
The high-end property is being built on a half-acre parcel that had created a buzz in the property sector in 2010.
In the same year, Urusharta Cemerlang Sdn Bhd, a company controlled by property magnate Tan Sri Desmond Lim, had purchased the tiny strip of land from Singapore billionaire Kwek Leng Beng for a record price of RM7,209 per sq ft.
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