KUALA LUMPUR: The manager of Sunway Real Estate Investment Trust
(SunREIT) has announced that it has acquired 163 Retail Park in Mont Kiara, Kuala Lumpur, for RM215mil.
In a statement, Sunway REIT Management Sdn Bhd said the REIT trustee had signed a conditional sale and purchase agreement with D'Kiara Place Sdn Bhd, a wholly-owned subsidiary of YNH Property Bhd, to purchase the seven-storey retail mall.
According to SunREIT, the mall, which is the centrepiece component of a mixed-integrated development known as Kiara 163, has a gross floor area of about 76,146 sqm with a net lettable area of about 23,740 sqm and 1,085 car park bays.
The property is 94% occupied with over 100 tenants and brands, and is anchored by Jaya Grocer.
"We are delighted to have the opportunity to acquire what we feel is the best retail asset in the Mont’ Kiara neighbourhood.
"While competition in the retail industry in Klang Valley is rising, we believe 163 Retail Park is fulfilling the every day requirements of a niche market and whose income will be resilient and less impacted by new mall openings," said Sunway REIT Management CEO Clement Chan.
He said the manager is anticipating an initial net property income yield of 6.5% from the property, which will be yield-accretive to SunREIT's portfolio.
"Surrounded by a substantial captive population comprising both locals and expatriates and coupled with our strong branding and track record in mall management, we believe the mall can be further enhanced as a premium lifestyle hub and NPI increased through tenant mix optimisation and asset enhancement initiatives," he added.
The proposed acquisition will be fully funded by SunREIT's existing debt facilities and is expected to be completed by the second quarter of 2024, subject to the fulfilment of the conditions precedent of the sale and purchase agreement.
Upon successful completion of the proposed acquisition, SunREIT's assets under management (AUM) will increase to RM9.1bil, maintaining its position as the second largest listed REIT in Malaysia, measured by AUM.
