KUALA LUMPUR, June 10 -- Paradigm Real Estate Investment Trust (Paradigm REIT), a local real estate investment trust, plans to acquire three hotels and a commercial gateway over the next three years.
The assets are the Hyatt Place Johor Bahru Paradigm Mall, Le Méridien Petaling Jaya, Premier Hotel Klang, and the Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2.
Paradigm REIT Management Sdn Bhd's Investment, Finance and Accounts director, Chong Kian Fah said the proposed acquisition would be funded through a 50:50 combination of cash and newly issued REIT units.
“We plan to raise the cash portion through medium-term notes (MTNs). Our proposal is to pay the vendor half in cash and half in new REIT units,” he said at a press conference following Paradigm REIT’s listing ceremony today.
Previously, it was reported that the unit trust aims to acquire the three hotels in 2026, and the commercial gateway in 2027 or 2028.
The unit trust, which debuted on the Main Market today, opened unchanged from its initial public offering (IPO) price of RM1.00, with 1.73 million shares traded.
Meanwhile, in terms of expansion, its executive director and chief executive officer, Chuah Kah Noi said that as the largest REIT presence in Johor Bahru, the team is also looking to acquire more assets in the state, focusing on those that are yield-accretive.
She believes that Paradigm REIT is well-positioned to maintain a stable outlook, given the current sales and occupancy levels across its portfolio of assets.
“For most shopping malls, what is critical is sales. The more sales you drive to your tenants, the more profitable they will be, and the more likely they are to stay.
“Occupancy across our entire portfolio is quite strong. Our asset in Johor Bahru is about 99.3 per cent, in Petaling Jaya it is close to 98 per cent, and Bukit Tinggi Shopping Centre is fully leased at 100 per cent,” she said.
She added that Paradigm Mall in Johor Bahru as well as Paradigm Mall in Petaling Jaya are expected to continue performing well into next year, benefiting from the Visit Malaysia 2026 campaign and the close collaboration with the Ministry of Tourism, Arts and Culture Malaysia.
The counter ended the trading day unchanged at RM1, with 44.59 million shares traded.
-- BERNAMA
