Kuala Lumpur: Paradigm Real Estate Investment Trust (Paradigm REIT), a local real estate investment trust, is planning to acquire three hotels and a commercial gateway over the next three years. The assets in question include the Hyatt Place Johor Bahru Paradigm Mall, Le M©ridien Petaling Jaya, Premier Hotel Klang, and the Gateway@Kuala Lumpur International Airport (KLIA) Terminal 2.
According to BERNAMA News Agency, Chong Kian Fah, Paradigm REIT Management Sdn Bhd’s Investment, Finance, and Accounts director, stated that the proposed acquisition would be funded through a 50:50 combination of cash and newly issued REIT units. “We plan to raise the cash portion through medium-term notes (MTNs). Our proposal is to pay the vendor half in cash and half in new REIT units,” he mentioned at a press conference following Paradigm REIT’s listing ceremony.
Previously, it was reported that the unit trust aims to acquire the three hotels in 2026 and the commercial gateway in 2027 or 2028. The unit trust, which debuted on the Main Market today, opened unchanged from its initial public offering (IPO) price of RM1.00, with 1.73 million shares traded.
Paradigm REIT’s executive director and chief executive officer, Chuah Kah Noi, highlighted the company’s expansion plans, focusing on acquiring more assets in Johor Bahru, emphasizing those that are yield-accretive. Chuah believes Paradigm REIT is well-positioned to maintain a stable outlook, given the current sales and occupancy levels across its portfolio.
She stated that sales are critical for most shopping malls, as higher sales drive tenant profitability and retention. Occupancy across their portfolio is strong, with Johor Bahru at 99.3 percent, Petaling Jaya close to 98 percent, and Bukit Tinggi Shopping Centre fully leased at 100 percent.
Chuah added that Paradigm Mall in Johor Bahru and Paradigm Mall in Petaling Jaya are expected to continue performing well into next year, benefiting from the Visit Malaysia 2026 campaign and collaboration with the Ministry of Tourism, Arts and Culture Malaysia. Despite the day’s trading activity, the counter ended unchanged at RM1, with 44.59 million shares traded.