Paradigm REIT eyes certain malls, screening through ‘substantial’ number of assets

• “Some parties have already approached us, and we have also identified certain malls.”

KUALA LUMPUR (June 10): Paradigm Real Estate Investment Trust (KL:PARADIGM) said it has already identified some malls for potential acquisitions, and sellers have lined up to pitch their assets to the newly-listed trust.

The number of malls available for Paradigm to assess is “actually quite substantial,” chief executive officer and executive director Selena Chua told reporters after Paradigm REIT’s debut on Bursa Malaysia’s Main Market on Tuesday.

“We can explore opportunities in different regions as well,” Chua said. “Some parties have already approached us, and we have also identified certain malls.”

Currently, Paradigm’s portfolio comprises three retail assets—Bukit Tinggi Shopping Centre, Paradigm Mall Petaling Jaya, and Paradigm Mall Johor Bahru—with a combined appraised value of RM2.4 billion.

The three malls are either fully or nearly fully occupied. Further, Paradigm holds a right of first refusal over certain assets owned or developed by its sponsor WCT Holdings Bhd (KL:WCT), including Le Méridien Petaling Jaya, Hyatt Place Johor Bahru at Paradigm Mall, and Première Hotel in Klang.

WCT also currently operates the concessions in SkyPark Terminal at Sultan Abdul Aziz Shah Airport (Subang) and Gateway@KLIA2 at Kuala Lumpur International Airport (KLIA) in Sepang, that could be injected into Paradigm.

Future acquisitions will be funded through a combination of new units and cash, said director of investment, finance and accounts Chong Kian Fah. The cash portion will be raised through a medium-term note programme of up to RM5 billion, he noted.

“The proportion of units and cash will likely be split about 50:50 when paying the vendors,” he added.

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