KUALA LUMPUR: KIP Real Estate Investment Trust
(KIP REIT) has secured shareholders’ approval to acquire DPulze Shopping Centre in Cyberjaya for RM320 million.
The real estate investment company also received approval for a private placement of up to 180 million new units, representing approximately 29.1 per cent of existing issued units, to partially fund the acquisition.
In a statement today after its annual and extraordinary general meeting, KIP REIT said it expects the private placement exercise to raise up to RM146.7 million in gross proceeds.
"Out of the 180 million new units, up to 9 million units will be allotted to a major unitholder of KIP REIT Datuk Ong Kook Liong and up to six million units to KIP REIT chief executive officer Valerie Ong Pui Shan,” it said.
Valerie noted that the acquisition marks their largest investment and will further strengthen KIP REIT’s retail portfolio.
"Based on the net property income of RM22.8 million for the financial year ended Jan 31, 2024, the yield from the property is expected to generate 7.1 per cent.
"DPulze is 100 per cent tenanted and upon the completion of the acquisition, tentatively scheduled by the first quarter of 2025, we anticipate higher rental reversion, hence contributing to higher earnings and long-term income stability,” Valerie said.
Following this purchase, along with five other proposed acquisitions, including four industrial assets and a hypermarket in Gerik, Perak, KIP REIT's total investment property valuation is expected to reach close to RM1.5 billion, with net lettable area increasing by 49.5 per cent to 28.89 hectares.
Valerie also said that KIP REIT remains committed to its strategy of growing its total assets under management to RM2 billion in the coming years while delivering sustainable and consistent returns to unitholders. - Bernama
