KUALA LUMPUR: Pacific Trustees Bhd, the trustee of KIP Real Estate Investment Trust (KIP REIT), has entered into a conditional sale and purchase agreement to acquire KIPMall Kota Warisan from Cahaya Serijaya Sdn Bhd for RM80mil.
The acquisition is pursuant to a right of first refusal granted to Pacific Trustees in 2016.
“Upon completion of the acquisition, which is expected to be by the first quarter of 2024, it will expand KIP REIT’s portfolio to 11 assets in contrast to the existing seven KIPMalls, located in Bangi, Tampoi, Kota Tinggi, Masai, Senawang and Melaka as well as AEON Mall Kinta City in Ipoh and 3 industrial properties in Pulau Indah, Port Klang,” it said in a statement.
KIPMall Kota Warisan, located in Sepang, Selangor has a net lettable area of 186,080 sq ft (17,287 sqm) and houses one and a half storeys of retail space registering an occupancy rate of 98%.
The mall has been installed with 980,000 kilowatt peak (kWp) solar photovoltaic (PV) systems for the generation of electricity which results in carbon emission avoidance of 3,040 tonnes.
This will increase KIP REIT’s total PV system installation capacity from 2.73 megawatt (MW) to 3.71 MW. KIP REIT’s existing 2.73 MW PV system currently contributes approximately 3,200 MW Hours of electrical energy per year.
Based on the certificate of valuation issued by CBRE WTW Valuation & Advisory Sdn Bhd dated May 17, the market value of KIPMall Kota Warisan is RM80mil.
“The acquisition will be funded by a mixture of bank borrowings and equity capital, increasing KIP REIT’s gearing ratio from 33.2% as at March 31 to 37.2%,” it said.
KIP REIT executive director cum chief executive officer Valerie Ong Pui Shan said with this acquisition, KIP REIT’s total assets under management will cross the RM1bil mark.
“This is a huge achievement and paves the way for us to grow further. We continue to aggressively look for community-centric retail assets as well as industrial assets that will add value to KIP REIT as we remain steadfast on delivering long-term value to our unitholders.”