Previously, we’ve mentioned that if a building cannot be maintained, it has to be demolished or possibly redeveloped so that the space can be fully and better utilised in the future. Other than demolition, selling the property can also be an option so that it will no longer be your problem, depending on the agreement with the buyer of course.
Recently, the former E-Curve mall is reported to be redeveloped into luxury condominiums. Turning something old into something new is not necessarily a bad idea but what about selling a mall that’s still doing well? Also, why would anyone sell a successful mall in the first place? Word on the street is that Pavilion Bukit Jalil will soon be sold. Here’s the story:
Pavilion Bukit Jalil mall is reportedly being sold for RM2.2 billion. According to Berita Harian, Pavilion Real Estate Investment Trust (Pavilion REIT) is planning to buy the luxury mall from Regal Path Sdn Bhd for that large amount. Selling the establishment doesn’t necessarily mean that it’s doing poorly. It can mean that it’s part of an investment to further improve the quality of its services.
In a statement released yesterday (Tuesday, 22nd November), Regal Path will sell a block of five-storey retail shopping center with two levels of underground parking located in Bukit Jalil City, Kuala Lumpur along with related assets and rights. It is said that Pavilion REIT will also purchase additional movable property for this project including laptops, buggies, and mobile lifting work platforms.
Malton Berhad, Regal Path’s joint venture company, reassured that the purchase of the mall will not result in the establishment being listed as a PN17 company; a failing company that reaches certain criteria categorised by Bursa Malaysia.
In conjunction with the sale, Pavilion REIT also proposed the placement of new units to raise up to RM1.27 billion at an issue price to be determined later through a book-building exercise. The sale is also actually in line with Malton’s strategy of constantly evaluating its investment portfolio and realising those investments’ values for the benefit of shareholders.
If you wish to know about the future plans for Pavilion Bukit Jalil and the full details of this acquisition, you can find out more at Pavilion REIT’s official website.
Sources: Pavilion REIT (1)(2), BHarian, TheVocket
