PETALING JAYA: Pavilion Real Estate Investment Trust (Pavilion REIT) is expecting 8% to 10% of gross revenue growth with the recent acquisitions of both Da:men Mall and Intermark Mall.

Its manager Pavilion REIT Management Sdn Bhd said after the company’s AGM that with that two acquisitions, the company will evaluate local and international opportunities as long as it is a yield-accretive.

Said Pavilion REIT Management CEO Philip Ho: “There is no consolidated effort (to buy other malls such as Pavilion Bukit Jalil or Pavilion Damansara Heights) but when an opportunity arises, the timing is right and the mall is yield-accretive, then Pavilion REIT will assess the acquisition fundamentals.

“For upcoming Pavilion Bukit Jalil and Pavilion Damansara Heights, when the offer is made by the owners of these developments, an assessment will be made whether it is a yield-accretive acquisition,” said Ho in an e-mail.

Ho: ‘There is no consolidated effort (to buy other malls such as Pavilion Bukit Jalil or Pavilion Damansara Heights).

As for Da:men Mall, Ho said there was a condition precedent of 85% occupancy level and average rental of RM9.20 per sq ft.

It had the right of first refusal which was announced in the Pavilion REIT prospectus back in 2011, he said.

As for Intermark Mall, the opportunity was presented (to them) and with the good city centre location, catchment and the good yield, Pavilion REIT announced the proposed acquisition in December 2015.

“At that period of announcement, the mall’s occupancy level was approximately 74% and average rental was at RM7.20.

“(We will be) enhancing the operational standards for Da:men Mall and Intermark Mall.

“We are confident that with the experienced centre management team, the good location coupled with the right target market, leasing and marketing strategies, we will be able to charter growth for both occupancy and foot traffic,” he said.

Pavilion REIT bought Da:men for RM488mil and the Intermark Mall for RM160mil.

As for Pavilion KL, Ho said they will continue to improve its tenant mix, occupancy level and marketing strategies.

Pavilion REIT achieved 5% average rental reversion for 2015 for Pavilion KL.

“In 2016, we hope to have a positive rental reversion despite the challenging economic situation,” he said.

He said there is still strong confidence from the local and the international funds for Pavilion REIT, as its core asset Pavilion KL is a brand name that is recognised regionally.

As for Pavilion Dalian, a retail mall located in the mixed-use Dalian Centre development in Dalian City, Northeast China, Pavilion REIT is not associated with that mall.

If the developer of Pavilion Dalian makes an offer, then the team at Pavilion REIT will assess the acquisition opportunity based on the yield and returns, said Ho.

Pavilion Dalian was opened to the public in April 2015.