KUALA LUMPUR: Paradigm Real Estate Investment Trust (Paradigm REIT) has unveiled plans to expand its portfolio with the acquisition of three hospitality assets and a commercial property over the next three years, reinforcing its long-term growth strategy and commitment to income-generating investments.
The properties identified for acquisition include Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya, Premier Hotel Klang, and Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2. These assets are expected to be acquired progressively, with the hotels targeted for 2026 and the commercial gateway earmarked for 2027 or 2028.
According to Chong Kian Fah, Director of Investment, Finance and Accounts at Paradigm REIT Management Sdn Bhd, the proposed acquisitions will be financed via a balanced structure comprising 50 percent cash and 50 percent newly issued REIT units. The cash component will be raised through the issuance of medium-term notes (MTNs).
“Our strategy involves paying the vendor half in cash and the remainder in new REIT units,” Chong stated during a press conference held after Paradigm REIT’s listing ceremony today.
Paradigm REIT made its debut on the Main Market today, opening at its initial public offering (IPO) price of RM1.00, with a trading volume of 1.73 million shares.
Executive Director and Chief Executive Officer Chuah Kah Noi affirmed the trust’s intention to further strengthen its presence in Johor Bahru, leveraging its position as the largest REIT operator in the region. She highlighted a continued focus on acquiring yield-accretive assets to drive long-term value.
Chuah expressed confidence in the REIT’s stable outlook, underpinned by robust sales and high occupancy rates across its portfolio.
“For shopping malls, tenant sales performance is key. The stronger the sales, the more sustainable the tenancy. This translates into higher retention and income stability,” she said.
Paradigm REIT’s properties are currently achieving strong occupancy levels, with its Johor Bahru asset recording 99.3 percent occupancy, Petaling Jaya nearing 98 percent, and Bukit Tinggi Shopping Centre operating at full occupancy.
She added that Paradigm Mall Johor Bahru and Paradigm Mall Petaling Jaya are expected to maintain strong performance into 2026, supported by the Visit Malaysia 2026 campaign and strategic collaboration with the Ministry of Tourism, Arts and Culture Malaysia.
-Bernama
