Pavilion REIT is a REIT established with the principal investment policy of investing, directly and indirectly, in a diversified portfolio of income producing real estate used predominantly for retail purposes (including mixed-use developments with a retail component) in Malaysia and other countries within the Asia-Pacific region as well as real estate-related assets.
Investment objectives
The primary objective of Pavilion REIT is to provide unitholders with regular and stable distributions and achieve long-term growth in net asset value per unit, while maintaining an appropriate capital structure.
Investment strategies
The Manager intends to achieve the investment objective of Pavilion REIT through the following strategies:
(i) Actively pursuing acquisition opportunities in accordance with the investment policy of Pavilion REIT
- acquire yield accretive income-producing properties
- explore repositioning opportunities
(ii) Pursuing an efficient capital management strategy
- diversify sources of debt funding
- maintaining a reasonable level of debt service capability
- securing favourable terms of funding
- managing financial obligations
- managing the exposures arising from adverse market interest rates through appropriate hedging strategies.
- actively managing the range of maturities to reduce refinancing risk and optimise the cost of capital
(iii) Proactively managing the properties and implementing asset enhancement strategies
- maximise quality shopper traffic, especially at Pavilion Kuala Lumpur and Elite Pavilion malls
- active management of tenant base in order to optimise tenant mix and maintain high occupancy rates
- continued asset enhancement initiatives to increase net lettable area and rental potential
- improving operational efficiency and cost effectiveness
- commitment to sustainability to have positive impact on brand recognition, reputation and lessen environmental impact