KUALA LUMPUR (Jan 17): Pavilion Real Estate Investment Trust (REIT) has decided not to participate in the ownership of the Pavilion Bukit Jalil mall here, which is being developed by Malton Bhd.

No reason was given for its decision.

In a filing with Bursa Malaysia today, Malton said Pavilion REIT, via its trustee MTrustee Bhd, had informed Malton's wholly-owned subsidiary Pioneer Haven Sdn Bhd of its decision not to participate in the ownership of the on-going development.

Both Pavilion REIT and Malton are linked to property tycoon Tan Sri Desmond Lim Siew Choon, who is a substantial shareholder and chairman in both entities.

Pioneer Haven had on Aug 8 last year formally invited Pavilion REIT to participate in the ownership. This was followed by a due diligence and discussions between the two parties on the method of participation and negotiations on relevant terms and conditions.

The Pavilion Bukit Jalil mall comprises one block of retail mall with five levels of retail spaces and two levels of basement parking. The mall, scheduled to open in the third quarter of 2020, will have a net lettable area of 1.8 million sq ft.

The Pavilion Bukit Jalil mall is part of the wider Bukit Jalil City project, with a gross development value of RM4 billion, which is being undertaken by Pioneer Haven.

On July 9, 2018, The Edge Malaysia Weekly had reported quoting sources that Canada Pension Plan Investment Board was in talks with Malton on the purchase of up to a 49% stake in the Pavilion Bukit Jalil mall.

Malton shares closed unchanged at 52.5 sen today, with 696,300 shares done, bringing it a market capitalisation of RM277.27 million. Pavilion REIT units, meanwhile, ended the day up one sen or 0.61% at RM1.66, with 6.25 million shares traded, valuing it at RM5.04 billion.