22/05/2025

PROPERTY THURSDAY | MAY 22, 2025

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Sunway, Majestic Gen break ground on RM4b project in JB

JOHOR BAHRU: Master community developer Sunway Property and Majestic Gen recently broke ground on a new RM4 billion mixed-use development in Yahya Awal, Johor Bahru. The ceremony was officiated by Sunway Property managing director Chung Soo Kiong, CEO Gerard Soosay, Majestic Gen executive director Ta Wee Dher and director Kee Ju Hun. Sitting atop a 15.5-acre land, the joint venture project features serviced apartments and retail outlets complemented by a host of F&B offerings, lifestyle amenities as well as an education and wellness hub. Its first phase will be launched in Q3’25 with more than 1,000 small office/home office units. Strategically located within the vicinity of the Customs, Immigration and Quarantine Complex and the future RTS Link, the development is well-positioned to serve the residents, local community, Malaysia-Singapore commuters and Singa-porean investors. Surrounded by key amenities including the Hutan Bandar Johor Bahru (Johor Bahru City Council Forest), two top performing schools – SJK (C) Foon Yew 2 and SMK Sultan Ismail, as well as public and private hospitals, the development offers excellent accessibility and promotes vibrant city-centre live-ability. “As Johor Bahru evolves into a prominent economic hub, this project sets a new benchmark for integrated city living where smart design, seamless connectivity, and natural elements come together. Aligned with our vision to create

o Iconic mixed-use development in Yahya Awal set to redefine Johor Bahru city centre safe, sustainable, and connected communities, we are leveraging the prime location next to the 50 acre Hutan Bandar Johor Bahru, seamlessly integrating our mixed use development with this essential green lung, fostering harmony between urban living and nature. We’re proud to play a role in transforming the city landscape, in line with Sunway Property’s commitment to long term value, active placemaking and our brand promise of being With You For Generations ”, said Gerard. “We are honoured to announce our strategic partnership with Sunway Property, a leader in sustainable urban development, on this landmark inaugural project. This collaboration marks a pivotal milestone for Majestic Gen, representing not only our first joint venture with Sunway,

From left: Chung, Ta Wee, Gerard Soosay and Kee breaking ground in Yahya Awal.

the 2,000-acre Sunway City Iskandar Puteri, contributing to Johor Bahru’s transformation into an international gateway city. This reinforces our confidence in Johor’s long-term growth, supple menting the Johor-Singapore Special Economic Zone initiative,” Gerard said.

but also one of the largest undertakings in our company’s portfolio, with an estimated development value of RM4 billion,” said Wee Dher. This Yahya Awal development aligns and ratchets up Sunway Property’s strategy to establish a strong foothold in Johor’s city

centre while driving growth along key strategic corridors. Recently, Sunway signed a RM2.6 billion Bukit Chagar Transit-Oriented Development with MRT Corp. “With these two projects, we have anchored our developments near the checkpoints in Johor Bahru and by the Second Link via

Nod for Pavilion REIT’s RM480m acquisitions KUALA LUMPUR: Pavilion Real Estate Investment Trust (Pavilion REIT) has received unitholder approval to acquire two landmark hospitality assets – Banyan Tree Kuala Lumpur (BTKL) and Pavilion Hotel Kuala Lumpur (PHKL) – in a RM480 million yield accretive transaction that strengthens the REIT’s long-term performance and reinforces its presence within Bukit Bintang. Banyan Tree Hotels & Resorts Pte Ltd, and have consistently achieved average occupancy rates of 82.1% (BTKL) and 81.5% (PHKL) for the financial year ended Dec 31, 2024. BTKL, housed within a 59-storey integrated building, offers 55 well appointed rooms, the award winning Banyan Tree Spa and a rooftop bar. PHKL, which sits atop Pavilion Kuala Lumpur Mall, comprises 325 well-appointed rooms with comprehensive meeting and event facilities. Kuala Lumpur Mall’s share of the portfolio will decrease from 61.8% to 58.5%. Ho noted that Malaysia’s economy is well-positioned to navigate ongoing global trade concerns, supported by its growing role in regional supply chain diversification, a robust recovery in tourism and resilient domestic consumption.

Residential construction gains momentum in first quarter KUALA LUMPUR: Construction

construction activity and the increase of residential new launches were supported to balance the property market growth and sustain its positive momentum in 2025. “The continuous government support through initiatives such as the Program Residensi Rakyat, Projek Rumah Mesra Rakyat, and strategic infrastructure development have been a key driver in accelerating construction activity. “Government-led initiatives aimed at strengthening Malaysia’s position in the global investment prospects such as the Forest City Special Financial Zone, the Johor–Singapore Special Economic Zone, and the implementation of a duty-free zone in Pulau Satu, Forest City have started to demonstrate significant impact,” he said. Abdul Razak said the performance of residential overhang recorded a total of 23,515 units valued at RM15 billion, reflecting a marginal increase of 1.6% and 7.7% in volume and value from 23,149 units worth RM13.94 billion in Q4’24. In addition, the occupancy performance for shopping complexes recorded a marginal increase, with the occupancy rate rising to 79% compared to 78.8% in Q1’24. The Malaysian House Price Index in the first quarter 2025 stood at 225.3 points (an average price of RM486,070 per unit), with an annual growth rate of 0.9%, he said. – Bernama

activity in the residential property subsector recorded significant growth in the first quarter of 2025 (Q1’25) where the number of completed units surged by 30.2% to 9,329 units from 7,168 units in Q1’24. According to director-general of valuation and property services, Valuation and Property Services Department (JPPH) Abdul Razak Yusak, housing starts also rose by 32.5% to 28,344 units in Q1’25 from 21,391 units in Q1’24, indicating a strengthening development trajectory for the residential subsector. However, planned new development is seen decreasing to 8,300 units in Q1’25 compared to 11,000 units in Q1’24, he said during the launch of the Property Market First Quarter 2025 report via Facebook live under JPPH. He also said new residential launches are doing well, more than doubling to 12,498 units in Q1’25 from 5,585 units in the same period in 2024, with a sales rate of 10.8%. He noted that property transaction performance experienced a slight decline, with the volume and value of transactions decreasing by 6.2% and 8.9% to 97,772 transactions valued at RM51.42 billion, compared to 104,194 transactions worth RM56.47 billion in the same period of 2024. Abdul Razak said although the property transactions began on a slower note, the robust pace of

Malaysia’s tourism sector is currently on a strong trajectory, with 2024 already surpassing pre-covid figures. Recent forecasts indicate international tourist arrivals are expected to reach 34.1 million in 2025 and 35.6 million in 2026, driven by the Visit Malaysia 2026 campaign, enhanced visa-free access from China and India, and increasing air connectivity from key source markets. While the acquisition enhances Pavilion REIT’s presence in Bukit Bintang, the REIT continues to benefit from the performance of its existing assets across the Klang Valley, notably Pavilion Bukit Jalil. “Pavilion Bukit Jalil continues to be a key growth driver for the REIT. Its performance has been supported by rising occupancy levels, positive rental reversions and a vibrant, expanding tenant mix. We are also encouraged by the rapid growth of Bukit Jalil’s catchment area, which is attracting a rising residential and working population, further reinforcing the mall’s long-term upside potential,” he said.

The resolutions, passed recently at a unitholders’ meeting, enable MTrustee Bhd, acting on behalf of Pavilion REIT to proceed with the acquisitions from Lumayan Indah Sdn Bhd and Harmoni Perkasa Sdn Bhd. Pavilion REIT Management Sdn Bhd CEO Datuk Philip Ho said, “We are pleased with the strong support from our unitholders. These hotels are highly synergistic with Pavilion Kuala Lumpur Mall and Elite Pavilion Mall, allowing for an elevated visitor and hotel guest experience.” Ho added that Pavilion REIT remains focused on owning and managing high-performing retail-led assets, especially super-regional and integrated developments, and this acquisition presents a value-aligned opportunity within the REIT’s existing footprint in Bukit Bintang, contributing to the overall vibrancy of the area while enhancing the REIT’s income resilience and growth prospects. The two properties are 5-star hotels operated and managed by

Banking & Finance Post-acquisition, the hotels will comprise approximately 5.5% of Pavilion REIT’s enlarged total asset under management, while Pavilion The acquisition will be funded through a combination of debt and or equity, including the issuance of up to 172.4 million new units to the vendors and/or their nominees and a private placement of up to 386 million new units to raise between RM264 million and RM552 million. Under the transaction structure, the hotels will be lease to Harmoni Perkasa Sdn Bhd, for an initial 10-year term with renewal options of up to 20 years. The lease guarantees a fixed annual rental of RM33.5 million for the first five years, reflecting a gross yield of approximately 7%. Rental escalations and variable components linked to the hotels’ performance offer further upside potential. This structure offers both predictability and upside, with a variable component linked to the hotels’ performance over time.

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