Qatar fund QIA buys stake in Malaysia’s iconic shopping mall

Malaysia's Pavillion Bukit Jalil mall.

Qatar Investment Authority (QIA), the sovereign wealth fund of the state of Qatar, is acquiring a stake in Malaysia’s Pavillion Bukit Jalil mall, one of the largest regional shopping malls in the country, from listed property developer Malton Berhad.

Under the agreement, QIA will inject fresh capital of RM407 million ($97 million) through subscription of redeemable preference shares in Regal Path Sdn Bhd, which will acquire a 49-per cent stake in the iconic mall from Malton for RM1.48 billion ($353 million).

Malton’s wholly-owned subsidiary Khuan Choo Realty (KCR) and Desmond Lim via his private vehicle Jelang Tegas will also invest RM207 million ($49 million) and RM216 million ($51.5 million), respectively, in Regal Path through the purchase of redeemable preference shares. Lim serves as the non-executive chairman and the major shareholder of Malton.

It was in January of this year when Malton announced that QIA has obtained approval from its investment committee to participate in the stake sale of Pavilion Bukit Jalil, which has an estimated net lettable area of 1.8 million square feet.

The announcement is the latest example of QIA investing in high-end, world-leading retail outlets and real estate across the globe, according to Malton.

These investments fortify a long-term strategy to build a portfolio, which includes some of the world’s most significant retail businesses and real estate across Asia, America and Europe – a strategy that has allowed QIA to build close and trusting relationships with the numerous partners in international real estate and retail.

“We are very happy to have QIA on board and their participation in the Pavilion Bukit Jalil mall project is indeed a testimony of QIA’s confidence not just in the projects managed under the Pavilion brand, but Malaysia as a stable and high-potential investment destination,” Lim said.

Sitting on a 28-acre freehold land, the Pavilion Bukit Jalil is poised to become one of the country’s largest regional shopping hub. It will house five levels of retail space, two levels of basement parking with 4,717 car park bays, and a centralised green area measuring approximately 3.69 acres.

The regional shopping mall is part of the 50-acre Bukit Jalil City integrated lifestyle development comprising Signature Shop Offices, The Park Sky Residence and The Park 2.