Asian Pac Acquires Jaya Shopping Centre for RM100 Million: What It Means for Malaysia’s Retail Property Market

In a strategic move that signals growing investor confidence in Malaysia’s retail sector, Asian Pac Holdings Bhd (KL:ASIAPAC), via its wholly owned subsidiary Primadana Utama Sdn Bhd, has announced the acquisition of Jaya Shopping Centre in Petaling Jaya, Selangor for RM100 million in cash.

This acquisition comes as a timely expansion of the group’s retail property portfolio, marking a significant milestone for both the developer and Malaysia’s maturing commercial property market.

🛍️ Jaya Shopping Centre: A Prime Retail Asset in the Heart of PJ

Jaya Shopping Centre is a seven-storey neighbourhood mall located in Section 14, Petaling Jaya—an affluent and densely populated suburban area known for its consistent foot traffic and strategic connectivity.

📈 Boosting Asian Pac’s Retail Portfolio & Recurring Income

Asian Pac Holdings currently owns and manages Imago Mall in Kota Kinabalu, a highly successful retail destination in East Malaysia. With the addition of Jaya Shopping Centre, the group’s retail net lettable area increases from 728,094 sq ft to 996,207 sq ft.

According to the company’s Bursa Malaysia filing, the Jaya acquisition is aligned with Asian Pac’s long-term investment strategy to grow its net property income (NPI) through high-potential retail assets.

“This acquisition will not only provide a ready recurring income stream but also allow the group to establish a presence in a location outside its existing operations,” the company said.

💼 Financing the Acquisition: Healthy Leverage & Growth Potential

Asian Pac plans to fund the RM100 million deal through a combination of internally generated funds and bank borrowings. While the breakdown has not been finalized, the company maintains a manageable gearing position:

Cash & bank balances (as of Dec 31, 2024): RM59.51 million
Short-term borrowings: RM223.34 million
Long-term borrowings: RM279.03 million
Net gearing expected to rise to 0.6x from 0.51x post-acquisition

Given the recurring income potential from Jaya Shopping Centre, this gearing level is considered sustainable within industry norms.

🏙️ Why Petaling Jaya Remains a Strategic Investment Location

Petaling Jaya (PJ) continues to be one of the most sought-after urban hubs in the Klang Valley. With its mix of residential, educational, and commercial infrastructure, PJ’s property values have shown consistent resilience over the years.

Key investment highlights in PJ include:

High footfall from surrounding middle-income neighbourhoods
Excellent connectivity via major highways
Proximity to business parks, schools, and hospitals
Rising demand for retail, wellness, and experiential dining outlets

With this acquisition, Asian Pac positions itself to benefit from PJ’s stable consumer base and upward rental potential as tenant demand rebounds post-pandemic.

🧠 Investor Insights: What This Means for Malaysia’s Retail Real Estate Market

This deal reflects a broader trend where developers and REITs are re-entering the retail property space, encouraged by:
✅ Stronger consumer sentiment
✅ Return of international tourism
✅ Revival of brick-and-mortar shopping with experiential retail offerings

The RM100 million price tag—approximately RM1,078 psf—is considered competitive, especially when compared to newer suburban malls, many of which are transacting above RM1,200 psf depending on size and location.

🔍 What’s Next for Asian Pac?

Looking ahead, Asian Pac’s strategic footprint across East and West Malaysia may open doors for future REIT listings, joint ventures, or asset enhancement initiatives.

The company is expected to undertake asset repositioning at Jaya Shopping Centre, possibly revitalizing tenant mix, footfall strategy, and digital integration to increase yield and market appeal.

📢 Final Thoughts: Opportunity for Retail Property Investors

For savvy investors eyeing retail real estate in Petaling Jaya or Klang Valley, this acquisition is a strong indicator of market optimism. With stable footfall, increasing suburban spending power, and urban renewal trends in PJ, properties like Jaya Shopping Centre offer promising upside potential.

Whether you’re a developer, REIT manager, or individual investor, watch this space—the retail revival is well underway, and Petaling Jaya is right at the centre of it.

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