KiP REIT eyes more acquisitions

Financial report: (from left) Chan, Chew, executive director Datuk Eric Ong Kook Liong and chief financial officer Hii Wei Bing going through the annual report at the AGM.

PETALING JAYA: KiP Real Estate Investment Trust (KiP REIT) has plans to diversify their portfolio based on yield rate and is looking for further acquisition of third-party assets following its successful takeover of Aeon Mall Kinta City in Ipoh.

KiP REIT chief executive officer Chan Heng Wah said during its second annual general meeting (AGM) in relation to the REIT’s geographical strategy that “we are exploring everywhere.”

He added: “It is all yield play. As long as it gives us good yield, and the property meets our criteria, we will consider it.

Its recent Kota Warisan asset under KiP Malls has been under operation since October 2017, and is currently at 85% average occupancy rate.

KiP group chief executive officer Valerie Ong said, “We have two more takeovers in the pipeline, one in Kuantan and another in Desa Coalfield Sungai Buloh.”

“The Kota Warisan, Kuantan and Desa Coalfield assets are already under construction, and the other two more are in the planning stage.

“KiP REIT also now holds five assets of the KiP Marts under the first right of refusal (ROFR) and are awaiting further agreements before it could be injected into their property portfolio.

Considering the RM208mil purchase of Kinta Mall, Chan said that the addition would translate into a 7.2% yield compared to the previous stipulated percentage of 6.9%.

The yield, however, still remains subject to the conditional precedents between the group and Kinta Mall’s vendors and would take either six to nine months to be fulfilled.

Occupancy rates for KiP Mart Melaka are currently at 70%.

“From the next month onward, we are bringing in a new tenant that specialises in home decor and this is expected to increase occupancy rate to 82%,” KiP REIT managing director Datuk Chew Lak Seong said.

The group is expecting the completion of the various asset acquisitions during their 2019 financial year.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , KiP Reit , portfolio , acquisitions , Ipoh , Mall , Valerie Ong , Chan , Chew ,


Did you find this article insightful?


Next In Business News

Mesiniaga sees turnaround in 2021 after dismal 2020
HLT Global reports robust growth in profit margins�
Hong Kong arrests 12, seizes US$116mil after stock scam
Axis REIT buys industrial property in Shah Alam
Teladan Setia’s public offer of 40.8m new shares oversubscribed 17.47 times
Beware of frothy SPACs, London Stock Exchange warns investors
Crude oil price surge pushes FBM KLCI above 1,600
Bank Negara forex reserves higher at US$109bil
Oil soars to near 14-month high as Opec+ extends output cuts into April
China blue-chip index ends lower after Beijing sets conservative growth target

Stories You'll Enjoy