Pavilion Real Estate Investment Trust announced that all the conditions precedent as set out in the sale and purchase agreement in relation to the acquisition of Pavilion Bukit Jalil together with the related assets and rights, have been fulfilled. Therefore, the SPA has become unconditional.
A fundamental condition of the SPA was that at least 80.0% of the total net lettable area of Pavilion Bukit Jalil have commenced rental billing with an average total rental of the tenanted NLA of not less than RM9.50 per square foot per month. The current occupancy rate of more than 82.0% is reflective of the mall’s position as a premier retail destination in the growing suburb of Bukit Jalil.
Following this positive development, the REIT manager announced in a Bursa Malaysia Securities Berhad filing that it has fixed the issue price of the first tranche of its private placement exercise at RM1.22 per unit to raise approximately RM720 million. The Issue Price represents a discount of approximately 6.6% to the 5-day volume weighted average market price of the units up to and including of RM1.3068. Compared to recent bookbuilding exercises, such a discount demonstrates a strong value proposition for investors.
CIMB Investment Bank Berhad, Credit Suisse Securities (Malaysia) Sdn Bhd, Credit Suisse (Singapore) Limited and Maybank Investment Bank Berhad acted as the Joint Global Coordinators and Joint Bookrunners whilst AmInvestment Bank Berhad, Kenanga Investment Bank Berhad and RHB Investment Bank Berhad acted as the Joint Bookrunners for the Tranche 1 Placement.
As at 17 May 2023, units of Pavilion REIT closed at RM1.29, giving Pavilion REIT a market capitalisation of RM3.95 billion.
