Malaysia: BlackRock sells luxury mall to Pavilion REIT for $37.33m

Intermark Mall, located near the heart of Kuala Lumpur city centre. Image from Intermark Mall Facebook page.

World’s largest asset manager BlackRock has it has sold a luxury shopping mall in central Kuala Lumpur to Malaysia’s Pavilion Real Estate Investment Trust (Pavilion REIT) for MYR160 million ($37.33 million).

A private real estate fund under the BlackRock umbrella bought Intermark Mall along with two corporate office towers and a hotel for $600 million in 2007 and has refurbished the complex on prime real estate in Malaysia’s capital.

The sales of one of the office towers and the hotel have since garnered BlackRock a combined total of $339 million.

BlackRock is also reportedly looking to sell an office tower in Singapore in a deal which, reports suggest, could be worth as much as $2.83 billion.

Pavilion Reit said, in a filing to the Malaysian stock exchange, it has entered into a sale and purchase agreement with The Intermark Sdn Bhd for the acquisition of the six-storeyed retail building having a main parcel of strata floor area of approximately 337,427 square feet, together with 367 designated car park bays in the basement levels.

The Intermark will provide Pavilion REIT a rental guarantee of MYR15 million for three years to be held by a trustee, which will be jointly appointed by Pavilion REIT and The Intermark. Pavilion REIT said, the estimated net yield for The Intermark Mall comes to 6.1 per cent per year, and 3 per cent when discounting the rental guarantee.

The mall has 74 per cent occupancy rate, based on committed and/or commenced tenancies as at the valuation date of September 30, 2015.

Pavilion REIT Management said, the proposed acquisition is consistent with the investment objective and strategy of Pavilion REIT and is expected to be accretive to the trust’s distributable income due to the property’s strategic location near the Golden Triangle of Kuala Lumpur city.

The company expects the purchase to be complete by the first quarter of 2016.

Also read:

SG’s Royal Group buys DoubleTree in KL for $106m

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.