KUALA LUMPUR, 31 May 2019 – Malton Berhad (Malton) is pleased to announce the participation of Qatar Investment Authority (QIA) and Tan Sri Desmond Lim in the development and ownership of the iconic Pavilion Bukit Jalil mall, one of the largest regional shopping malls in the country. Malton’s wholly-owned subsidiary Khuan Choo Realty Sdn Bhd (KCR), QIA’s wholly owned subsidiary Q PBJ Sdn Bhd, and Tan Sri Desmond Lim via his private vehicle Jelang Tegas Sdn Bhd (Jelang Tegas) have inked a Subscription Agreement on 28 May 2019 with Regal Path Sdn Bhd (Regal Path) to partake in the development of Pavilion Bukit Jalil mall. Regal Path is the special purpose vehicle which will retain the ownership of Pavilion Bukit Jalil mall under this transaction.
Pursuant to the Pavilion Bukit Jalil mall transaction, Regal Path had signed a sale and purchase agreement with the developer of the retail mall, Pioneer Haven Sdn Bhd, a wholly-owned subsidiary of Malton, for a purchase consideration of RM1.48 billion on 28 May 2019. In addition, KCR and Jelang Tegas will also be the joint owner of Regal Path, holding 51% and 49% equity interest respectively. Regal Path will issue RM830 million redeemable preference shares of which QIA, Jelang Tegas and KCR will invest RM407 million, RM207 million and RM216 million respectively.
With an estimated net lettable area of 1.8 million square feet, the iconic Pavilion Bukit Jalil mall will be one of the country’s largest regional shopping hub that will rejuvenate Bukit Jalil into a vibrant destination for business, best-in-class shopping experience, dining, leisure and entertainment hub to both locals and tourists alike. Sitting on a 28-acre freehold land, the Pavilion Bukit Jalil mall façade which stretches up to 560 metres along the road is catered to give maximum visibility to retailers’ brands. Surrounded by world-class amenities, the regional mall 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.
Slated for completion by March 2021, Pavilion Bukit Jalil mall being the crown jewel of Bukit Jalil City is poised to be an entertainment and retail hub in the southern corridor of Klang Valley. Tapping into the retail expertise of the retail management team from Pavilion KL, an award-winning and one of Malaysia’s most successful malls, the Pavilion Bukit Jalil mall will feature a good mix of retailers attracting a steady pool of local and international visitors. The regional shopping mall will differ not only in terms of scale and concept, but also the entertainment and shopping experience offered for all age groups under one roof.
The announcement is the latest example of QIA investing in high-end, world-leading retail outlets and real estate across the globe. 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 onboard 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. This solid and long-term partnership signifies our overall efforts to drive the nation’s economy forward. We hope and look forward to forge further partnerships together and continue to play a major role in Malaysia’s economic development,” said Tan Sri Desmond Lim, who serves as the Non-Executive Chairman and the major shareholder of Malton.
The above transaction is subject to amongst others, the approvals of the regulatory authorities in Malaysia and the shareholders of Malton.
QIA is the Sovereign Wealth Fund of the State of Qatar, and it was established in 2005 to develop, invest and manage the state reserve funds and other assets for the Future generations of Qatar.