Pavilion Real Estate Investment Trust ( REIT) has signed a memorandum of understanding (MoU) with five renewable energy (RE) companies through its trustee, MTrustee Bhd.
With this MoU, one of the largest retail concentrated REIT in Malaysia has plans to buy electricity generated by a solar power plant to be located in Pasir Mas, Mukim Apam, Kelantan, to power its malls, Pavilion KL, Pavilion Bukit Jalil, and Intermark in Malaysia.
The plant is expected to be commercially operational in the third quarter of 2025, according to a stock exchange filing. MTrustee signed an agreement with a consortium consisting of reNIKOLA Holdings Sdn Bhd, Sun Energy Ventures Sdn Bhd, and Syarikat Osmania Logistics Sdn Bhd for the Pavilion KL and Intermark malls. Another MoU was signed for Pavilion Bukit Jalil with a consortium consisting of 12 Solarpark One Sdn Bhd and Solarcap Sdn Bhd.
This agreement is in line with the framework of the Corporate Green Power Programme (CGPP). The CGPP is a government project that allows businesses to participate in the promotion and usage of renewable energy in their operations.
Pavilion REIT, said , “ These MoUs allow the consortiums and MTrustee to secure all relevant and required permits from the Ministry of Natural Resources, Environment, and Climate Change (NRECC), Tenaga Nasional Bhd, and other applicable local authorities or agencies in order to participate in the CGPP. The various consortiums will form a special purpose vehicle for the execution of a corporate green power agreement (CGPA).”
The CGPA for both MoUs is to be executed within 60 days following the Energy Commission’s approval to participate in the CGPP, the firm said. Pavilion REIT said that in terms of the key terms of a possible CGPA, the contract period is 21 years.
“Pavilion REIT has the option to exercise its rights once annually to sell all or part of the renewable energy certificates (RECs) back to the consortium if price is deemed as not favourable to Pavilion REIT,” it noted.