KUALA LUMPUR, September 17 — Pavilion Real Estate Investment Trust (REIT) is planning to acquire da:men USJ for RM488 million from Equine Park Country Resort Sdn Bhd and Revenue Concept Sdn Bhd.
Its manager, Pavilion REIT Management Sdn Bhd, has entered into a conditional sales and purchase agreement with the two companies, to acquire the five-storey shopping mall located in Subang Jaya.
“The proposed acquisition which is expected to be completed by the first quarter of 2016 is consistent with the investment objective and strategy of Pavilion REIT,” it said in a statement today.
The proposed acquisition is intended to be fully funded by debt, which will increase its gearing ratio from 15 per cent as at June 30 to 23 per cent — below the gearing limit of 50 per cent prescribed by the REIT Guidelines.
Upon completion, the proposed acquisition would enlarge Pavilion REIT’s portfolio to RM4.9 billion from RM4.4 billion as at June 30, it said.