Asian Pac Holdings Acquires Jaya Shopping Centre for RM100 Million
Background of the Acquisition
Primadana Utama Sdn Bhd, a wholly owned subsidiary of property developer Asian Pac Holdings Bhd, has announced its plan to acquire Jaya Shopping Centre in Petaling Jaya for a cash consideration of RM100 million. The proposed acquisition aligns with Asian Pac’s strategy to invest in retail malls, with the objective of increasing net property income.
Strategic Location and Features
The seven-storey Jaya Shopping Centre boasts about 92,712 square feet of net lettable area and includes a lower ground floor, along with four levels of basement parking with 786 bays. The mall is strategically located in the heart of various affluent suburbs in Petaling Jaya and is accessible via major roads and highways, enhancing convenience and foot traffic.
Rationale for the Acquisition
"This acquisition will not only provide a ready recurring income stream but also allow the group to establish a presence in a location outside its existing operations," said Asian Pac. "The mall is strategically located in the heart of various affluent suburbs in Petaling Jaya and accessible via major roads and highways, enhancing convenience and foot traffic (while) contributing to its potential as a prime retail destination," it added.
Funding for the Acquisition
Asian Pac will fund the acquisition through a combination of internally generated funds and bank borrowings. However, the breakdown of the funding has yet to be finalised.
Vendor Details
The vendor of the mall, Jaya Section Fourteen Sdn Bhd, has an occupancy rate of 78%. The mall is a prime retail destination, with a strong potential for growth and development.
Conclusion
The acquisition of Jaya Shopping Centre is a strategic move by Asian Pac to expand its presence in the retail market and increase its net property income. The mall’s prime location and strong demand for retail space make it an attractive investment opportunity for the company.
Frequently Asked Questions
Q: What is the consideration for the acquisition of Jaya Shopping Centre?
A: The consideration is RM100 million in cash.
Q: How will Asian Pac fund the acquisition?
A: The company will fund the acquisition through a combination of internally generated funds and bank borrowings.
Q: What is the occupancy rate of the mall?
A: The occupancy rate is 78%.
Q: Who is the vendor of the mall?
A: The vendor is Jaya Section Fourteen Sdn Bhd.
Q: What is the size of the mall?
A: The mall has a net lettable area of 92,712 square feet.