KIP-REIT plans largest asset acquisition at RM320mil

(From left): KIP Real Estate Investment Trust Management Sdn Bhd (KIP REIT Manager) legal manager Northon Lee, Pacific Trustees Berhad (KIP REIT Trustee) director George Cheah, DPulze Ventures Sdn Bhd directors, KIP Real Estate Investment Trust chief executive officer Valerie Ong Pui Shan, KIP REIT Manager financial controller Jolynn Tan at signing ceremony between KIP REIT Trustee and DPulze Ventures.—ONG SOON HIN/The Star

KUALA LUMPUR: KIP Real Estate Investment Trust (KIP-REIT) has proposed to acquire DPulze shopping centre for RM320mil through a conditional sale and purchase agreement with DPulze Ventures Sdn Bhd.

Based on a report by Nawawi Tie Leung Property Consultants Sdn Bhd dated April 22, 2024, the shopping centre is valued at RM321mil.

KIP-REIT chief executive officer Valerie Ong Pui Shan said as it was the largest acquisition since the group’s listing in 2017, the move is a strategic addition to its portfolio.

DPulze shopping centre in Cyberjaya now boasts a 100% occupancy rate and is expected to generate RM22mil per annum in revenue for the group, based on the retail centre’s valuation in April this year.

The shopping centre has 311,499 sq ft of net lettable area, housing over 100 tenants and is connected to nearby cities via rail and road.

“The addition of DPulze shopping centre not only enhances our presence in the retail sector but will also provide the group with a stable, long-term income that will generate attractive returns for unitholders,” Ong said at a briefing after the signing ceremony yesterday.

The acquisition is expected to be completed by the first quarter of 2025 and will be funded via a combination of bank borrowings and private placement exercise.

It will increase the group’s asset under management (AUM) to close to RM1.4bil.

The proposed private placement, announced concurrently with the acquisition, is expected to raise gross proceeds up to RM146.7mil via the issuance of 180 million placement shares.

“The group’s net gearing ratio will increase to 39% after the private placement period, which is within the 50% threshold,” said Ong.