KUALA LUMPUR, November 22 — Pavilion Real Estate Investment Trust (Pavilion REIT) has proposed to acquire Pavilion Bukit Jalil Mall (PBJ) from Regal Path Sdn Bhd for an aggregate purchase consideration of RM2.2 billion.
A filing with Bursa Malaysia today said Regal Path will dispose of one block of the five-storey retail mall with two basement car park levels located within Bukit Jalil City, Kuala Lumpur, together with the related assets and rights.
In addition, Pavilion REIT will also acquire additional movable assets required for the operations of PBJ Mall which include laptops, buggies and mobile elevating work platforms (ancillary purchases).
“The purchase consideration for the ancillary purchases will be based on the total net book value of the assets as of the completion date. As of the latest practicable date, the total net book value of these assets is approximately RM3.4 million,” it said.
Regal Path is a joint-venture company of Malton’s wholly-owned subsidiary, Khuan Choo Realty Sdn Bhd, Qatar Investment Authority’s wholly-owned subsidiary, Q PBJ Sdn Bhd, and Tan Sri Desmond Lim via his private vehicle Jelang Tegas Sdn Bhd.
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Malton said the disposal is not expected to result in it becoming a cash company or a PN17 company as defined under the Listing Requirements.
The disposal is in line with Malton’s strategy of constantly evaluating its portfolio of investments and seeking opportunities to unlock and realise the value of its investments for the benefit of its shareholders.
Meanwhile, in conjunction with the acquisition, Pavilion REIT has also proposed new unit placements of up to RM1.27 billion at an issue price to be determined later using the book building method.
It stated that the proposed placements may be implemented in two tranches to settle the PBJ purchase consideration. Tranche 1 is expected to raise RM720 million in proceeds to be used as part of the RM650 million completion date payment and expenses (RM70 million).
“While the Tranche 2 placement is targeted to raise proceeds of up to RM550 million to be used for defects rectification payment (RM50 million), strata title payment (RM100 million) and final balance payment (RM400 million),” it added.