Bloomberg News

Pavilion Said to Plan to Raise $255 Million in Malaysian IPO

October 10, 2011

(Adds comparative trust size in sixth paragraph.)

Oct. 10 (Bloomberg) -- Pavilion REIT, part-owned by the Qatar Investment Authority, plans to sell units on Malaysia’s stock exchange as early as next month through a property trust, said two people with knowledge of the matter.

The company, which owns the Pavilion shopping, residential and office project in Kuala Lumpur, aims to raise about 800 million ringgit ($255 million), said the people, who declined to be identified as the information is private. The size of the initial public offering may rise to as much as 1 billion ringgit depending on demand, one of the people said.

At 800 million ringgit, the Pavilion IPO would be Malaysia’s fourth-biggest share sale this year, after offerings by Bumi Armada Bhd., UOA Development Bhd. and MSM Malaysia Bhd. Companies canceled or postponed $8.9 billion of IPOs around the world in the third quarter as stocks plunged, putting the market on track to set a record for pulled deals.

Fitness First Ltd., which had sought to list in Singapore by the end of this year, is among those delaying IPO plans, people with knowledge of the matter said this month.

Pavilion is owned by Malton Bhd. Chairman Desmond Lim Siew Choon and his wife, together with Qatar Investment Authority. Its flagship development comprises a 1.4 million square-foot retail mall with 450 outlets, plus one office building and two residential towers in Kuala Lumpur’s city center, according to Malton’s website.

This would be Malaysia’s third-largest listed property trust at 800 million ringgit. Sunway Real Estate Investment Trust raised about 1.5 billion ringgit last year in the Southeast Asian’s biggest public offering by a trust.

CIMB Group Holdings Bhd., Malayan Banking Bhd. and Credit Suisse Group AG are managing the offering, the people said. Desmond Lim and his wife were at meetings and couldn’t immediately comment, according to their secretaries. A spokeswoman for Pavilion, who asked not to be identified, had no immediate comment.

--Editors: Barry Porter, Philip Lagerkranser

To contact the reporters on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net; Chan Tien Hin at thchan@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net


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