KUALA LUMPUR: Malaysia’s largest retail real estate investment trust Pavilion REIT is looking to expand by acquiring assets in Penang, Johor and the Klang Valley, according to news reports.
“We will evaluate any financially-viable investment opportunity that comes around,” said Philip Ho, CEO of Pavilion REIT’s manager Pavilion REIT Management Sdn Bhd, after the REIT’s listing on Bursa Malaysia yesterday.
With regard to the REIT’s expansion plan, Ho said the company’s trustees had signed three rights of first refusal (ROFR) for the acquisition of Fahrenheit 88 mall, the extension of Pavilion Kuala Lumpur mall and also another mall in USJ, Subang Jaya.
The management will also evaluate opportunities to acquire assets overseas when presented, but currently the focus is on local expansion, said Ho.
The Pavilion mall in Jalan Bukit Bintang in downtown Kuala Lumpur provides 96.4% of the REIT’s overall revenue.
The REIT opened yesterday at RM1.03, a 13 sen premium to its institutional offer price of 90 sen, with 15.7 million units traded at the market’s opening
bell.
The stock ended the day as the most highly traded with 197.3 million units transacted, closing 12 sen higher at RM1.02 after hovering between the low of 98 sen and the high of RM1.04 yesterday.
Based on an estimated gross dividend payout of 5.7 sen next year, the REIT was traded at a yield of 5.6%.
This article appeared in The Edge Financial Daily, December 8, 2011.
“We will evaluate any financially-viable investment opportunity that comes around,” said Philip Ho, CEO of Pavilion REIT’s manager Pavilion REIT Management Sdn Bhd, after the REIT’s listing on Bursa Malaysia yesterday.
With regard to the REIT’s expansion plan, Ho said the company’s trustees had signed three rights of first refusal (ROFR) for the acquisition of Fahrenheit 88 mall, the extension of Pavilion Kuala Lumpur mall and also another mall in USJ, Subang Jaya.
The management will also evaluate opportunities to acquire assets overseas when presented, but currently the focus is on local expansion, said Ho.
The Pavilion mall in Jalan Bukit Bintang in downtown Kuala Lumpur provides 96.4% of the REIT’s overall revenue.
The REIT opened yesterday at RM1.03, a 13 sen premium to its institutional offer price of 90 sen, with 15.7 million units traded at the market’s opening
bell.
Pavilion REIT executive director Datin Cindy Lim hitting the gong to mark the REIT's debut. From left are executive directors Datuk Maznah Abdul Jalil, Datuk Lee Tuck Fook, Syed Mohd Fareed Shaikh Alhadshi, Ooi Ah Heong, Datuk Roger Tan, Datuk Mokhzani Abdul Wahab and Ho.
The stock ended the day as the most highly traded with 197.3 million units transacted, closing 12 sen higher at RM1.02 after hovering between the low of 98 sen and the high of RM1.04 yesterday.
Based on an estimated gross dividend payout of 5.7 sen next year, the REIT was traded at a yield of 5.6%.
This article appeared in The Edge Financial Daily, December 8, 2011.
