SHAH ALAM (March 30): Pavilion Real Estate Investment Trust (Pavilion REIT) expects “flattish” rental growth in 2017 for its Pavilion Mall in Kuala Lumpur amid a challenging economic environment.
Philip Ho, who is chief executive officer of Pavilion REIT Management Sdn Bhd, the manager of Pavilion REIT, said 2017’s flattish rental growth forecast for Pavilion Mall along Jalan Bukit Bintang compared to 2016’s rental growth at between 6% and 7%.
“(For 2017), we expect rental growth for Pavilion (Mall) to be slightly flattish, (as economic conditions are still challenging),” Ho told reporters after Pavilion REIT’s annual general meeting here today.
In 2017, he said, 21% to 23% of Pavilion Mall’s tenants were due for rental revision. In 2016, the rental revision rate stood at 60%.
Pavilion REIT is a retail-centric property investment trust. According to its website, the REIT owns three retail assets and one office tower.
The list includes Intermark Mall at the intersection of Jalan Tun Razak and Jalan Ampang in Kuala Lumpur.
At Bursa Malaysia, Pavilion REIT shares rose one sen or 0.6% at 12:30pm to settle at RM1.74 for a market value of RM5.27 billion.
Pavilion REIT’s latest reported net assets per share stood at RM1.2972. — theedgemarkets.com