Malls are usually categorized according to their function and target customers. Here are the major 4 types of malls in Malaysia.

Type A Mall:

Target local and non-local communities. Serve as a location for activities and events. Retail of luxury brands and brands in line with the positioning of the mall.

Example: KLCC Malaysia, 1U Bandar Utama, Pavillion Bukit Bintang

Type B Mall:

Target on the local community and serve as a place for relaxation and spending a family days during weekends. Retail of mass-market brands and usually comes with post offices or cinemas.

Example: Atria Shopping Gallery, AEON Maluri

Type C Mall:

Target on the local community and provides conveniences or goods needed urgently. Malls consist of mostly services outlet which includes restaurants, gyms, tuition centres, childcare centres, agency firms and beauty centres.

Type D Mall:

Target on mostly foreign labour and small parts of the local community. Although commanding a low rental rate, it is mostly vacant and poorly maintained.

Something you can observe before you invest in a Mall REIT.

·         Are the shopping malls changing their retail format fast enough?

·         Are there more service providers (cinema & restaurants) than products retailer (apparel stores)

·         How’s the foot traffic on weekends and weekday peak hours?

·         How is their overall occupancy rate and have vacancies been rising?

·         What action is the management taking to help its tenants boost sales?

·         How is the rental reversion rate?