Sunway-REIT said the property is 99% occupied with over 130 tenants and is anchored by Pacific Hypermarket & Department Store.
KUALA LUMPUR: Sunway Real Estate Investment Trust
(Sunway-REIT) has entered into a conditional sale and purchase agreement (SPA) with Tenaga Nusantara Sdn Bhd to acquire Kluang Mall in Kluang, Johor for RM158mil.
In a statement, Sunway-REIT said the property serves over 320,000 residents in the Kluang district and attracts a potential market of around one million people in central Johor, including Batu Pahat, Ayer Hitam, Kulai and Mersing.
The property is a free-standing four-storey shopping complex with a gross floor area of approximately 808,000 sq ft with a net lettable area of about 360,000 sq ft. It has approximately 920 car park bays.
Sunway-REIT said the property is 99% occupied with over 130 tenants and is anchored by Pacific Hypermarket & Department Store, supplemented by a wide spectrum of food and beverage outlets, as well as lifestyle and entertainment offerings.
According to Sunway-REIT, the property is expected to generate an indicative net property income (NPI) yield of approximately 6.8% based on the purchase consideration, in comparison to Sunway-REIT’s portfolio NPI yield of 5.7% for the financial year ended Dec 31, 2023.
Upon completion of the proposed acquisition, Sunway-REIT’s assets under management (AUM) will increase to RM9.8bil, maintaining its position as the second largest listed REIT in Malaysia, measured by AUM.
“We are pleased to be adding another asset to our growing portfolio and expanding our geographical footprint to central Johor. Kluang Mall has recorded strong and stable occupancy over the past years, supported by healthy growth in footfalls and a well-established presence in the area,” Sunway REIT Management Sdn Bhd chief executive officer Clement Chen said.
“Drawing on the success of our rejuvenation of Sunway Carnival Mall in Seberang Jaya, Penang, we are confident of similarly adding value and unlocking the potential of Kluang Mall in another potentially underserved area.
“We believe the proposed acquisition is an exciting opportunity to capitalise on the untapped potential within the central Johor area, which will soon benefit from the impending completion of the Gemas-JB electrified double-tracking rail project and ongoing road improvement works along the Batu Pahat-Ayer Hitam-Kluang federal route,” Chen said.
Sunway REIT Management is the manager of Sunway-REIT. Barring any unexpected event, the proposed acquisition is expected to be completed by the fourth quarter of 2024.
