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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.
Daily Express
16-07-2025
- Business
- Daily Express
Government to narrow trade deficit in transportation services sector
Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 By: Bernama Text Size: According to the latest data from the Department of Statistics Malaysia (DoSM), the services sector experienced a year-on-year growth of 5.0 per cent in 1Q 2025. SUBANG JAYA: The government is adopting a targeted approach to narrow the country's trade deficit in the services sector, particularly in transportation services, said Transport Minister Anthony Loke Siew Fook. He emphasised that this can be achieved by strengthening high-performing local industries and expanding export-oriented capabilities, especially in the oil and gas services sector. Advertisement While acknowledging that Malaysia continues to record a deficit in its transportation services due to its heavy reliance on international shipping liners, Loke said structural limitations in the container shipping industry remain a key challenge. 'Most of our exports and imports rely on foreign shipping lines, as we do not have a strong international container shipping industry. Although there are local shipping firms, they primarily serve the domestic market,' he told reporters after officiating Malaysia Maritime Week 2025, here on Tuesday. Loke said that global shipping is currently dominated by a few major players following a wave of consolidation, making it difficult for smaller or emerging economies like Malaysia to compete in the international logistics arena. However, he said the government is not standing still. Efforts are being made to narrow the deficit by boosting sectors where Malaysia has strong domestic capabilities. 'For example, in the oil and gas sector, we have competitive local companies. By expanding our services in this area, including the use of local oil tankers for international operations, we aim to increase our service exports and reduce the trade gap,' Loke added. The move, he said, aligns with the broader national strategy to enhance Malaysia's services trade performance, tap into niche maritime capabilities, and gradually strengthen the country's balance of payments (BOP) position. In his speech, the minister noted that the country's BOP in the first quarter (1Q) of 2025 saw the transport services account remain a key component of the services deficit. He said the transport account registered a larger deficit of RM9.3 billion in 1Q 2025, compared with a deficit of RM8.0 billion in the previous quarter, mainly contributed by the maritime transport service sectors, especially the ocean freight fraction. 'For Malaysia, the maritime BOP highlights a core economic paradox: it is a world-leading trading nation with globally ranked ports, yet it has a structural dependency on foreign shipping to carry its trade. 'This leads to a persistent and significant deficit in its sea transport account, which is a major contributor to the overall services deficit,' Loke explained. He said about 96.4 per cent of Malaysia's trade is transported by sea. According to the latest data from the Department of Statistics Malaysia (DoSM), the services sector experienced a year-on-year growth of 5.0 per cent in 1Q 2025. The main driver of this growth was the transportation and storage sub-sector, which expanded by 9.5 per cent, supported by high demand for ocean freight, ports, and logistics services—reaffirming Malaysia's vital role in regional and global supply chains. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
