Pavilion Real Estate Investment Trust (Pavilion REIT) has major plans to improve its assets following its listing on Bursa Malaysia, according to AmResearch Sdn Bhd (AmResearch).

One of its plans is to transform the current TANGS floor area into a ‘Fashion Avenue', which is expected to bring in 35 specialty stores comprising high-street brands targeted at middle- to high-end costumers, said AmResearch.

"The management is introducing ‘Fashion Avenue' covering 68,000 sq ft of floor space, the construction of which will begin in March 2012," said the firm.

"TANGS will be shutting down and is moving out on March 19, 2012 and the enhancement exercise is expected to be completed by August 2012."

In addition, the renovated precinct will offer more convenience and accessibility to shoppers, as it would have new pick-up and drop-off area with two sets of escalators at Jalan Raja Chulan.

"A total of RM13.5 million has been set aside for the enhancement, which will be funded by Pavilion REIT's existing working capital balances. This will result in a smaller anchor tenancy, for example at about 22 percent of occupancy," noted AmResearch.

"This is a strategic move as specialty tenants would yield stronger rentals."

Another asset in the pipeline for the trust is the planned extension of its serviced apartments and retail mall. This will bring about 300,000 sq ft of retail space and construction is expected to start this year.

Meanwhile, Fahrenheit 88, situated opposite the Pavilion Mall, is also expected to be released in the market. Formerly known as the KL Plaza, Fahrenheit 88 has a net lettable area of circa 300,000 sq ft and comprises five levels of retail space.

Furthermore, AmResearch expects Pavilion REIT to acquire the USJ Mall by 2015. This is a six-storey shopping complex with a net lettable area of between 300,000 sq ft and 400,000 sq ft.

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