Pavilion REIT Management Sdn Bhd, the REIT’s trustee, entered into a sale and purchase agreement with The Intermark Sdn Bhd on Tuesday for the acquisition of the mall, located on Jalan Tun Razak, which has a floor area of 31,348 sq m together with 367 designated car park bays.
On completion, the proposed acquisition will enlarge Pavilion REIT’s portfolio of investment properties from RM4.6bil as at Sept 30 to RM4.8bil.
“The proposed acquisition is consistent with the investment objective and strategy of Pavilion REIT and it is expected to be accretive to Pavilion REIT’s distributable income as the property is located along Jalan Tun Razak on the fringe of the Golden Triangle of Kuala Lumpur, the city’s main commercial precinct,” it said in a filing with Bursa Malaysia.
The Intermark Mall caters mainly to corporate tenants and hotel guests within the integrated mixed-use development as well as those working and/or staying in the immediate locality.
“The manager believes that with good and improving occupancy levels of its two corporate office towers and hotel, there will be opportunities for the Intermark Mall to improve its occupancy levels by offering a wider trade mix to cater to the needs of its corporate tenants, hotel guests and nearby residents,” it said.
Pavilion REIT units shed 1 sen to close at RM1.53 on Tuesday.