Details on Prospectus
|Company||:||Pavilion Real Estate Investment Trust|
|Offer Price||:||RM0.88 per unit|
|Shares||:||Up to 3,000,000,000 units to be issued and listed on Bursa Malaysia Securities Berhad.|
|NOTICE:||This registrable prospectus has yet to be registered by SC. You may view and/or download this prospectus to examine the accuracy of the information contained in this prospectus. Until such time when the prospectus has been registered, the information contained therein may be different from the registered prospectus . As such, final investment decisions should be based on the registered prospectus.|
The deal, worth around US$255 million equivalent and expected in November, would be the fourth largest IPO in Malaysia this year. Led by CIMB, Credit Suisse and Maybank, it should see about a quarter of the trust being offered to investors at a yield of perhaps 6% to 7%.
If successful, Pavilion REIT would be the 15th M-REIT, and perhaps also the second largest.
M-REITs have done well, with the largest ones having posted increases in unit prices of almost 32% on average since IPO. These instruments currently trade around their net asset values, and at an average distribution yield of around 7%.
The Pavilion Kuala Lumpur is a high-end, mixed-use urban development opened in 2007. It comprises a retail podium with a total net lettable area of 1.37 million square feet with 450 shops, an office tower with a net floor area of 185,000 square feet, two luxury residential towers, and a planned, six-star boutique hotel in the heart of the city’s golden triangle, in the Bukit Bintang and Raja Chulan area. It’s unclear at this stage exactly which assets will be included in the REIT.
The shopping mall is said to be 98% let, and market observers have speculated that Fahrenheit 88, another mall with a high occupancy rate that is located opposite The Pavilion and which is under the same management, may later also be injected into the trust.
The Pavilion is currently owned by Desmond Lim Siew Choon, executive chairman and controlling shareholder of listed property development, construction and property investment company Malton Bhd, his wife, Datin Tan Kewi Yong, and the Qatar Investment Authority, which owns a 49% stake in the ultimate holding company.