Property

Kuala Lumpur : Pavilion Real Estate Investment Trust (Pavilion REIT) has received unitholder approval to acquire two landmark hospitality assets, Banyan Tree Kuala Lumpur (BTKL) and Pavilion Hotel Kuala Lumpur (PHKL), in a RM480 million yield accretive transaction that strengthens the REIT’s long-term performance and reinforces its presence within Bukit Bintang. The resolutions, passed earlier today at a unitholders’ meeting, enable MTrustee Berhad, acting on behalf of Pavilion REIT, to proceed with the acquisitions from Lumayan Indah Sdn Bhd and Harmoni Perkasa Sdn Bhd. Dato’ Philip Ho, Chief Executive Officer of Pavilion REIT Management Sdn Bhd, said, “We are pleased with the strong support from our unitholders. These hotels are highly synergistic with Pavilion Kuala Lumpur Mall and Elite Pavilion Mall, allowing for an elevated visitor and hotel guest experience.” Ho added that Pavilion REIT remains focused on owning and managing high-performing retail-led assets, especially super-regional and integrated developments, and this acquisition presents a value-aligned opportunity within the REIT’s existing footprint in Bukit Bintang, contributing to the overall vibrancy of the area while enhancing the REIT’s income resilience and growth prospects. The two properties are 5-star hotels operated and managed by Banyan Tree Hotels & Resorts Pte Ltd, and have consistently achieved average occupancy rates of 82.1% (BTKL) and 81.5% (PHKL) for the financial year ended 31 December 2024. BTKL, housed within a 59-storey integrated building, offers 55 well-appointed rooms, the award-winning Banyan Tree Spa and a rooftop bar. PHKL, which sits atop Pavilion Kuala Lumpur Mall, comprises 325 well-appointed rooms with comprehensive meeting and event facilities. The acquisition will be funded through a combination of debt and or equity, including the issuance of up to 172.4 million new units to the vendors and or their nominees and a private placement of up to 386.0 million new units to raise between RM264 million and RM552 million. Under the transaction structure, the hotels will be lease to Harmoni Perkasa Sdn Bhd, for an initial 10-year term with renewal options of up to 20 years. The lease guarantees a fixed annual rental of RM33.5 million for the first five years, reflecting a gross yield of approximately 7.0%. Rental escalations and variable components linked to the hotels’ performance offer further upside potential. This structure offers both predictability and upside, with a variable component linked to the hotels’ performance over time. Post-acquisition, the hotels will comprise approximately 5.5% of Pavilion REIT’s enlarged total asset under management, while Pavilion Kuala Lumpur Mall’s share of the portfolio will decrease from 61.8% to 58.5%. Ho noted that Malaysia’s economy is well-positioned to navigate ongoing global trade concerns, supported by its growing role in regional supply chain diversification, a robust recovery in tourism and resilient domestic consumption. Malaysia’s tourism sector is currently on a strong trajectory, with 2024 already surpassing pre-covid figures. Recent forecasts indicate international tourist arrivals are expected to reach 34.1 million in 2025 and 35.6 million in 2026, driven by the Visit Malaysia 2026 campaign, enhanced visa-free access from China and India and increasing air connectivity from key source markets. While the acquisition enhances Pavilion REIT’s presence in Bukit Bintang, the REIT continues to benefit from the performance of its existing assets across the Klang Valley, notably Pavilion Bukit Jalil. “Pavilion Bukit Jalil continues to be a key growth driver for the REIT. Its performance has been supported by rising occupancy levels, positive rental reversions and a vibrant, expanding tenant mix. We are also encouraged by the rapid growth of Bukit Jalil’s catchment area, which is attracting a rising residential and working population, further reinforcing the mall’s long-term upside potential,” he said.

KUALA LUMPUR : Majuperak Holdings Berhad, a subsidiary of the Perak State Development Corporation (PKNPk), has announced the launch of Taman Tasik Ardea, a new residential development in Sungai Terap, Batu Gajah. The project is designed to provide affordable, high-quality housing for first-time buyers and young families, in line with the state’s long-term housing aspirations under the Perak Sejahtera 2030 framework. Developed on land owned by PKNPk-linked company Syarikat MajuPerak Berhad (SMB), the project forms part of a broader state initiative to maximise the value of government-linked assets while supporting sustainable community development. With a gross development value (GDV) of RM141 million, the project comprises 601 residential units, to be delivered in three phases: Phase One: 161 units Phase Two: 264 units Phase Three: 176 units Spanning 46.13 hectares, the development features single-storey terrace homes ranging between 1,075 and 1,275 square feet, offering three to four bedrooms per unit. Properties are priced between RM90,000 and RM250,000, depending on the type (Rumah Perakku 1 to Rumah Perakku 3). A select number of units will also be made available to non-Bumiputera buyers. At the project’s official launch, Perak Menteri Besar Datuk Seri Saarani Mohamad reaffirmed the state government’s commitment to ensuring equitable access to quality housing, particularly for young families and underserved groups. PKNPk Chief Executive Officer and Executive Chairman of Majuperak, Datuk Redza Rafiq Abdul Razak, stated that the initiative reflects a coordinated effort to align private sector participation with public policy objectives. “Under Majuperak, our goal extends beyond constructing homes — we are shaping communities that are inclusive, sustainable, and well-integrated with public amenities,” he said. “This project is a tangible representation of our vision to utilise state assets to enhance the socio-economic wellbeing of the people of Perak.” The development will also prioritise environmental sustainability and community-building through thoughtful planning and infrastructure support. –Business Times

KUALA LUMPUR : TCS Group Holdings Bhd’s wholly owned subsidiary, TCS Construction Sdn Bhd, has received clearance from Kuala Lumpur City Hall (DBKL) to resume construction of the J. Satine mixed development in Wangsa Maju, following a positive safety assessment. In a filing with Bursa Malaysia, the company confirmed that DBKL has granted approval for work to recommence on Phase 3 (SOHO Block) and Phase 2 (Blocks A and B) of the project. This decision follows DBKL’s review and acceptance of findings from an independent check consultant’s report, which verified that the site met the required safety and stability standards. Construction on Phase 1 (Blocks C and D) will continue once ongoing foundation strengthening works are completed and independently verified. TCS Director Datuk Tee Chai Seng welcomed the decision, stating that it reflects the company’s dedication to meeting safety requirements and maintaining construction integrity. “We are pleased with DBKL’s approval, which recognises the positive findings regarding the project’s structural stability and safety. This allows us to progress with construction while upholding our unwavering commitment to quality and compliance,” he said. Datuk Tee added that TCS will continue to work closely with relevant authorities and stakeholders to ensure all conditions set forth by DBKL are met. The project was temporarily suspended on 9 November 2024 following a site explosion, prompting DBKL to issue a stop-work order pending a full investigation. –Bernama

KUALA LUMPUR : Sunway Malls, Malaysia’s largest mall owner-operator by total retail space and number of properties, is accelerating its retail expansion with two new upcoming developments: Sunway Pier in Port Klang, Selangor, and Sunway Ipoh Mall in Sunway City Ipoh, Perak. Both malls are slated for completion by 2027. Sunway Pier will offer approximately 400,000 square feet of retail space, while Sunway Ipoh Mall is poised to be one of the group’s largest assets, featuring a net lettable area (NLA) of 1.2 million square feet. Further enhancing its portfolio, parent company Sunway Group has announced plans for a RM3 billion mixed-use development adjacent to the Bukit Chagar Rapid Transit System (RTS) Link station in Johor Bahru. Scheduled for completion by 2028, the development will feature a 400,000-square-foot retail component, reinforcing Sunway’s strategic footprint in key urban centres. With these new projects, Sunway Malls—the retail division of Sunway Group—is expected to expand its portfolio to 13 malls, collectively offering 8.2 million square feet of NLA. Future asset injections into Sunway REIT are anticipated to strengthen the group’s integrated property and investment platform, according to Sunway Malls Chief Executive Officer, Chan Hoi Choy. Despite recent downward revisions to Malaysia’s gross domestic product (GDP) growth forecasts by the International Monetary Fund (IMF) and the World Bank, Chan remains confident in Sunway Malls’ growth trajectory. The group aims to maintain the 5 per cent growth achieved in 2024. “Our retail business is closely correlated with national GDP growth, underpinned by millions of transactions recorded annually. Whether customers spend RM5 or RM5,000, the aggregated data provides a clear reflection of prevailing consumption trends,” Chan stated during the unveiling of the group’s 10th mall at Sunway City, Kuala Lumpur. He added that historically, Sunway Malls has consistently outpaced national GDP growth and expects this trend to continue. In 2024, Sunway Malls recorded 5 per cent year-on-year growth, with December sales increasing by 5.6 per cent year-on-year despite a shorter school holiday period. This positive momentum has been sustained into the first quarter of 2025, bolstered by festive spending during Chinese New Year and the school holidays. The Klang Valley continues to be the group’s dominant market, contributing 67.2 per cent of total NLA, followed by the Southern region at 15.8 per cent and the Northern region at 17 per cent. Sunway Square Mall, due to open in September, will span 300,000 square feet of NLA across four floors, accommodating over 150 retail outlets and offering 3,000 parking bays. Chan noted that 95 per cent of the mall’s retail space has already been successfully leased, with the remaining 5 per cent strategically reserved for tenants capable of delivering high-impact, experiential retail offerings. “Our commitment to enhancing consumer engagement and maintaining a dynamic tenant mix remains central to our growth strategy,” Chan concluded. –Business Times

PETALING JAYA :  IGB Real Estate Investment Trust (IGB-REIT), owner of Mid Valley Megamall and The Gardens Mall, is poised to deliver resilient occupancy rates and sustained rental growth following recent asset reconfigurations. According to CGS International (CGSI) Research, IGB-REIT maintained an impressive average occupancy rate of nearly 100% for the first quarter ended 31 March 2025 (1Q25), supported by steady footfall and growth in tenant sales. The gross monthly rental rate at Mid Valley Megamall rose from RM18.10 per sq ft in the financial year 2024 (FY24) to RM19.45 per sq ft in 1Q25, aided by the completion of the South Court reconfiguration in September 2024. The project saw the conversion of a large net lettable area (NLA) previously occupied by anchor tenant Metrojaya into multiple smaller, higher-yielding tenants. For The Gardens Mall, the gross monthly rental rate also improved, rising from RM14.94 per sq ft in FY24 to RM16.63 per sq ft in 1Q25. CGSI Research noted that IGB-REIT’s 1Q25 core net profit of RM110.6 million was in line with expectations, representing 27%–28% of both its and Bloomberg consensus full-year forecasts. Management reiterated its rental reversion guidance of mid-single digits for FY25 and expressed confidence in achieving a high renewal rate for leases expiring this year. As at 31 March 2025, 17.4% of Mid Valley Megamall’s NLA and 51.5% of The Gardens Mall’s NLA are scheduled for renewal in FY25, including several key anchor tenants. While management flagged potential softer results in the second quarter due to seasonally weaker tenant sales, it expects FY25 earnings growth to be underpinned by full-year contributions from the South Court reconfiguration, continued rental rate increases, and potential gains from gross turnover rent. CGSI Research maintained its “Hold” rating on IGB-REIT, with a target price of RM2.21. Meanwhile, Kenanga Research reported that overall tenant sales at Mid Valley Megamall and The Gardens Mall remained stable in 1Q25, even as some rival malls saw declines. Following a recent site visit, Kenanga expressed optimism that the new higher-yielding tenants occupying the reconfigured Metrojaya space would continue supporting rental and sales growth throughout FY25. Kenanga also maintained its earnings forecasts, RM2.20 target price, and “Market Perform” rating. The revitalisation of the malls saw the introduction of around 20 new tenants, including brands such as Urban Revivo and Love, Bonito in the fourth quarter of 2024. With approximately 10% of the total NLA now fully occupied by these higher-yielding tenants since November 2024, the reconfiguration is expected to be a key earnings driver in the coming year. Kenanga Research added that the potential injection of Mid Valley Southkey into IGB-REIT remains a medium-term catalyst. At the time of writing, shares of IGB-REIT were trading at RM2.29. –The Star

KUALA LUMPUR : Taghill Holdings Bhd (KL:TAGHILL), formerly known as Siab Holdings Bhd, has secured a RM494 million construction contract in Bandar Sri Damansara, Selangor. In a filing with Bursa Malaysia on Friday, the group said its subsidiary, Taghill Projects Sdn Bhd (TPSB), received a letter of award from Indo Aman Bina Sdn Bhd to build two 55-storey serviced apartment towers, a 14-storey parking podium, and shared facilities. The project, which spans 40 months, is scheduled for completion by 9 July 2028. TPSB is required to provide a performance bond of RM24.73 million as part of the contract terms. Taghill said the contract is expected to contribute positively to its earnings and net assets for the financial year ending 31 May 2025. The latest award marks Taghill’s third major win this year. In February, the group secured a RM58 million contract for the construction of an 18-storey commercial complex in Ipoh, Perak, followed by a RM152 million commercial strata scheme project in Kuantan, Pahang. Despite the series of project wins, Taghill’s shares have fallen more than 29% year-to-date. The stock closed unchanged at 8.5 sen on Friday, valuing the group at RM132.3 million. –The Edge Malaysia

International Workplace Group (IWG) has announced the signing of a new centre under its Signature brand, located at the landmark Menara Merdeka 118. It will add to IWG’s global network of 4,000 locations spanning 120 countries, and support IWG’s future growth as it continues to cater to the rising demand for hybrid working. The new Signature centre boasts two floors of flexible work solutions, with 637 workstations, three meeting rooms, 31 coworking desks, a business lounge, and ample open space to support businesses of all sizes, with the option for large, branded and customised client areas. The premium city centre location has excellent transport accessibility, with easy access to highways, major roads and immediate access to the MRT, LRT, and expressway networks connecting users to locations like Klang Valley, Ampang, Sungai Buloh, Rawang, Shah Alam, Bangsar, Seremban and the Kuala Lumpur International Airport. Founder and Chief Executive Officer of IWG Mark Dixon said, “We are establishing a stronger presence in Malaysia with the signing of Signature at the renowned Menara Merdeka 118 in Kuala Lumpur, a prime business hub and the ideal location to drive our expansion plans. The signing of our newest Signature location comes as the demand for quality hybrid work solutions and access to a vast network of locations across Malaysia continues to rise.” Dixon added, “Our proven workplace model not only boosts employee satisfaction and productivity but also supports a more sustainable way of working. Through our continued collaboration with PNB, we are offering businesses a prestigious address in one of the world’s most sought-after locations, combining iconic locations with sophisticated flexible workspaces.” In Malaysia, IWG has 45 centres across four brands – Regus, HQ, Signature and Spaces, including four new centres announced last year, as well as four more new centres expected to open this year. In Kuala Lumpur, IWG currently has 16 operational centres throughout the city. This new centre is the fourth IWG location within PNB-owned properties, following three previous centres across Johor and Kuala Lumpur. This expansion is part of IWG’s broader network growth strategy in Malaysia, aimed at increasing accessibility to flexible work solutions for professionals and businesses. Dato’ Rick Ramli, Deputy President and Group Chief Executive of PNB, said, “We are pleased to welcome IWG’s new centre at Merdeka 118 as part of our continued efforts to support high-quality workspaces in Malaysia.” “As more Malaysian businesses and professionals seek premium office spaces tailored to their operational needs, we remain committed to facilitating greater access to diverse and high-quality work solutions. The addition of IWG’s latest centre aligns with our broader objective of supporting the evolving needs of the professional community in Malaysia,” he added. IWG’s Signature brand, known for its world-class workspaces in landmark buildings in major global hubs, offers a premium working environment with a custom design reflecting the quality and nature of the building – Signature at Merdeka 118 reflects the brand’s commitment to excellence. Standing tall at 678.9 metres, Merdeka 118 is the tallest building in Malaysia and Southeast Asia, and the second tallest building in the world, and also the first building in Malaysia to target triple green building platinum accreditations – Green Building Index (GBI), Green Real Estate (GreenRE), and has recently been certified in Leadership in Energy & Environmental Design (LEED).