KUALA LUMPUR (Dec 1): Pavilion Real Estate Investment Trust (Pavilion REIT) has terminated two memoranda of understanding (MOUs) it inked for the purchase of renewable energy (RE) from a solar power plant in Pasir Mas, Kelantan, under the Corporate Green Power Programme (CGPP) to power its malls.

The terminations are due to the REIT's unsuccessful bids to the Energy Commission to participate in the CGPP, according to its filing to Bursa Malaysia on Friday. The CGPP is a government programme that allows businesses to participate in the promotion and use of renewable energy in their operations.

In September this year, MTrustee Bhd, the REIT's trustee, had entered into MOUs with two different consortiums of RE players to facilitate its plan.

For the Pavilion KL and Intermark malls, MTrustee inked an MOU with a consortium comprising reNIKOLA Holdings Sdn Bhd, Sun Energy Ventures Sdn Bhd and Syarikat Osmania Logistics Sdn Bhd.

For its Pavilion Bukit Jalil, the trustee inked a similar MOU with a consortium comprising 12 Solarpark One Sdn Bhd and Solarcap Sdn Bhd.

For both MOUs, Pavilion REIT said a corporate green power agreement (CGPA) would be executed within 60 days after obtaining approval from the Energy Commission to participate in the CGPP.

Units of Pavilion REIT settled one sen or 0.82% lower to RM1.21, giving it a market capitalisation of RM4.42 billion.