Pavilion Real Estate Investment Trust’s manager Pavilion REIT Management has agreed to buy the da:men USJ shopping mall from Equine Park Country Resort and Revenue Concept.
The RM488 million (US$111.6 million) deal includes the five-storey shopping mall with a lower ground floor of about 420,920 sqft (39,100 sqm) of net lettable area and a two-level basement car park. Both plots are situated on a piece of freehold land that measures 3.499 ha.
This is the second acquisition by Pavilion REIT already this year. As reported by Inside Retail Asia on January 4, the trust has entered into an agreement to buy the six-storey Intermark retail building from US equity investor BlackRock.
The da:men mall, still under construction, is located northeast of Kuala Lumpur City Centre, along Jalan Kewajipan, within the locality of USJ 1, Subang Jaya. It is scheduled to open in November.
The mall is between two major highways, that is the Shah Alam Highway to the north and Damansara – Puchong Highway to its south.
“The acquisition is expected to be completed by the first quarter of 2016 and is consistent with the investment objective and strategy of Pavilion REIT,” Pavilion said in a statement.
“It is intended to be fully funded by debt, which will increase Pavilion REIT’s gearing ratio to 23 per cent, which is below the gearing limit of 50 per cent prescribed by the REIT guidelines,” it added.
When this year’s two new deals are settled, the REIT’s portfolio will reach RM4.9 billion.