Latest news with #KIPMallDesaCoalfields
The Star
22-07-2025
- Business
- The Star
KIP-REIT gets nod for retail property buy
KUALA LUMPUR: KIP Real Estate Investment Trust (KIP-REIT) unit holders approved at its EGM yesterday the group's expansion plan to acquire four retail properties in Kuantan and Selangor for RM118mil and a concurrent private placement to raise RM132mil. It stated that the four newly approved assets, KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan, are projected to contribute a combined revenue of RM11.3mil and net property income of RM8mil in the first full year of operation. 'This is equivalent to 11.7% and 11.6% of the group's nine-month financial year 2025 revenue of RM96.2mil and net property income of RM68.8mil, respectively, highlighting the strong earnings accretion potential of the expansion,' it said.
The Sun
22-07-2025
- Business
- The Sun
KUP REIT unitholders approve RM118 million acquisitions, private placement
PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has received unitholders' approval for its latest strategic expansion plan, which includes the acquisition of four retail properties in Selangor and Kuantan for RM118 million, alongside a private placement exercise to raise RM132 million. The newly approved assets – KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan – are projected to generate RM11.3 million in revenue and RM8.0 million in net property income (NPI) in their first full year of operations. This equates to 11.7% and 11.6% of KIP REIT's nine-month FY2025 revenue (RM96.2 million) and NPI (RM68.8 million), respectively, underscoring the earnings accretive nature of the expansion. These assets are expected to deliver an average initial yield of 6.8%, supported by long-term, stable lease structures. KIP REIT CEO Valerie Ong expressed appreciation for the strong backing from unitholders, noting that the acquisitions align with the REIT's strategy to strengthen its income-generating portfolio and support sustainable distribution per unit growth. 'The new assets will provide meaningful recurring income while expanding our footprint in high-potential suburban and emerging growth areas like Selangor and Kuantan. We are also encouraged by early investor interest in the private placement. With disciplined capital management and a proactive asset strategy, we are confident in delivering sustainable long-term returns,' she said. KIPMall Desa Coalfields features a well-diversified tenant mix, while Lotus's Indera Mahkota is anchored by a 15-year master lease agreement with built-in rental escalations. The two commercial buildings include shop lots and a KFC outlet, both secured by multi-year leases with renewal options, providing recurring income from established brands. To fund part of the acquisitions and upcoming upgrades, KIP REIT will undertake a private placement of up to 160 million new units, targeting gross proceeds of about RM132 million. The book-building phase is underway, with price-fixing scheduled for mid-August. Of the total proceeds, RM106.6 million will be used for the partial settlement of the acquisitions, RM21.9 million will be allocated for asset enhancement initiatives (AEI) at KIPMall Tampoi, and RM3.9 million will be allocated for estimated expenses. The AEI at KIPMall Tampoi forms part of the group's ongoing asset optimisation strategy, aimed at improving tenant mix, shopper experience, and rental yields. Planned upgrades include façade enhancements, interior refurbishments, and enhanced amenities to attract higher footfall and quality tenants. Completion and allotment of the new placement units are expected by early September 2025. This latest round of acquisitions and capital raising marks a significant milestone in KIP REIT's growth roadmap. Upon full completion – including pending acquisitions – the group's total portfolio value is projected to reach approximately RM1.6 billion, comprising over 3.4 million square feet of net lettable area. The move also strengthens KIP REIT's geographical diversification, adding exposure to Pahang and reinforcing its presence along the East Coast, complementing its existing footprint in the Klang Valley, Johor and Perak.
The Sun
22-07-2025
- Business
- The Sun
KIP REIT unitholders approve RM118 million acquisitions, private placement
PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has received unitholders' approval for its latest strategic expansion plan, which includes the acquisition of four retail properties in Selangor and Kuantan for RM118 million, alongside a private placement exercise to raise RM132 million. The newly approved assets – KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan – are projected to generate RM11.3 million in revenue and RM8.0 million in net property income (NPI) in their first full year of operations. This equates to 11.7% and 11.6% of KIP REIT's nine-month FY2025 revenue (RM96.2 million) and NPI (RM68.8 million), respectively, underscoring the earnings accretive nature of the expansion. These assets are expected to deliver an average initial yield of 6.8%, supported by long-term, stable lease structures. KIP REIT CEO Valerie Ong expressed appreciation for the strong backing from unitholders, noting that the acquisitions align with the REIT's strategy to strengthen its income-generating portfolio and support sustainable distribution per unit growth. 'The new assets will provide meaningful recurring income while expanding our footprint in high-potential suburban and emerging growth areas like Selangor and Kuantan. We are also encouraged by early investor interest in the private placement. With disciplined capital management and a proactive asset strategy, we are confident in delivering sustainable long-term returns,' she said. KIPMall Desa Coalfields features a well-diversified tenant mix, while Lotus's Indera Mahkota is anchored by a 15-year master lease agreement with built-in rental escalations. The two commercial buildings include shop lots and a KFC outlet, both secured by multi-year leases with renewal options, providing recurring income from established brands. To fund part of the acquisitions and upcoming upgrades, KIP REIT will undertake a private placement of up to 160 million new units, targeting gross proceeds of about RM132 million. The book-building phase is underway, with price-fixing scheduled for mid-August. Of the total proceeds, RM106.6 million will be used for the partial settlement of the acquisitions, RM21.9 million will be allocated for asset enhancement initiatives (AEI) at KIPMall Tampoi, and RM3.9 million will be allocated for estimated expenses. The AEI at KIPMall Tampoi forms part of the group's ongoing asset optimisation strategy, aimed at improving tenant mix, shopper experience, and rental yields. Planned upgrades include façade enhancements, interior refurbishments, and enhanced amenities to attract higher footfall and quality tenants. Completion and allotment of the new placement units are expected by early September 2025. This latest round of acquisitions and capital raising marks a significant milestone in KIP REIT's growth roadmap. Upon full completion – including pending acquisitions – the group's total portfolio value is projected to reach approximately RM1.6 billion, comprising over 3.4 million square feet of net lettable area. The move also strengthens KIP REIT's geographical diversification, adding exposure to Pahang and reinforcing its presence along the East Coast, complementing its existing footprint in the Klang Valley, Johor and Perak.
New Straits Times
22-07-2025
- Business
- New Straits Times
Unitholders approve KIP REIT's RM118mil acquisition, RM132mil fundraising plan
KUALA LUMPUR: Unitholders of KIP Real Estate Investment Trust (KIP REIT) have approved the acquisition of four retail properties located in Kuantan and Selangor for RM118.0 million, along with a private placement exercise aimed at raising RM132.0 million. The assets involved include KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan. These properties are expected to generate a total revenue of RM11.3 million and a net property income of RM8 million in their first full year of operations. KIP REIT said the figures represent 11.7 per cent of its revenue and 11.6 per cent of its net property income for the nine-month period of financial year 2025, which stood at RM96.2 million and RM68.8 million respectively, underscoring the earnings-accretive nature of the acquisitions. "The newly acquired assets are expected to deliver an average initial yield of 6.8 per cent, underpinned by stable, long term lease structures," it said in a Bursa Malaysia filing. To help finance part of the acquisitions and future enhancement works, the REIT said it will carry out a private placement of up to 160 million new units, aiming to raise gross proceeds of around RM132.0 million. "The placement has entered its book-building phase, with price-fixing targeted by mid-August 2025," it said. KIP REIT said proceeds from the placement will go towards RM106.6 million for partial settlement of the acquisitions, RM21.9 million for asset enhancement initiatives at KIPMall Tampoi and RM3.9 million for estimated expenses. It added that completion and allotment of the new units are expected by early September 2025. Chief executive officer Valerie Ong said the new assets will provide solid recurring income and enhance KIP REIT's presence in key suburban and high-growth areas like Selangor and Kuantan. "We are encouraged by early investor interest in the placement. With disciplined capital deployment and active asset management, we remain confident in delivering sustainable long-term returns," she said.
