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.