KUALA LUMPUR: The Pavilion Real Estate Investment Trust (REIT) may expand its portfolio in the next few years with the construction of a RM330mil five-star hotel in the same building.
"We will see how it goes. We may expand our REIT with this addition but at the moment, it really is too early to tell," Pavilion International Ltd director Lee Tuck Fook said on Thursday.
For FY ended Dec 31, 2013, Pavilion REIT's asset under management increased from RM4bil to RM4.1bil. The REIT closed the year at RM1.28 per unit.
The 13-storey Royale Pavilion Hotel is owned by Harmoni Perkasa Sdn Bhd, a subsidiary of Urusharta Cermerlang Sdn Bhd, which owns Pavilion Kuala Lumpur. The Qatar Investment Authority (QIA) has a 49% stake in Urusharta Cemerlang.
Developed by KL Pavilion Design Studio, construction of the Royale Pavilion Hotel will run from next month to the second quarter of 2016.
This project is separate from the 29,127-sq ft parcel, which was acquired by Urusharta Cemerlang Sdn Bhd at a record RM7, 209.80 per sq ft (totaling RM210mil) from London-based Millenium & Copthorne Hotels plc in 2010.
That project was reported to be 50-storey block comprising 39 floors of residential units and 10 floors of retail space.