KUALA LUMPUR (Jan 18): Pavilion Real Estate Investment Trust (REIT) has decided not to participate in the ownership of the Pavilion Bukit Jalil mall here, which is being developed by Malton Bhd. No reason was given for its decision.

In a filing with Bursa Malaysia yesterday, Malton said Pavilion REIT, via its trustee MTrustee Bhd, had informed Malton’s wholly-owned subsidiary Pioneer Haven Sdn Bhd of its decision not to participate in the ownership.

Both Pavilion REIT and Malton are linked to property tycoon Tan Sri Desmond Lim Siew Choon, who is a substantial shareholder and chairman in both entities.

Pioneer Haven had on last Aug 8 invited Pavilion REIT to participate in the ownership. This was followed by a due diligence and discussions between the two parties on the method of participation and negotiate relevant terms and conditions.

The mall comprises one block of retail mall with five levels of retail spaces and two levels of basement parking. It is scheduled to open in the third quarter of 2020 and will have a net lettable area of 1.8 million sq ft.

The mall is part of the wider Bukit Jalil City project, with a gross development value of RM4 billion, undertaken by Pioneer Haven.

On July 9, 2018, The Edge Malaysia Weekly reported quoting sources that Canada Pension Plan Investment Board was in talks with Malton to purchase a 49% stake in the mall.

This article first appeared in The Edge Financial Daily, on Jan 18, 2019.

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