KIP REIT chief executive officer Valerie Ong Pui Shan.
KUALA LUMPUR: KIP Real Estate Investment Trust
(KIP-REIT) has secured shareholders’ approval to acquire DPulze Shopping Centre in Cyberjaya for RM320mil.
The real estate investment company also received approval for a private placement of up to 180 million new units, representing approximately 29.1% of existing issued units, to partially fund the acquisition.
In a statement after its AGM and EGM, KIP-REIT said it expects the private placement exercise to raise up to RM146.7mil in gross proceeds.
“Out of the 180 million new units, up to nine 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 its largest investment and will further strengthen KIP-REIT’s retail portfolio.
“Based on the net property income of RM22.8mil for the financial year ended Jan 31, 2024, the yield from the property is expected to generate 7.1%.
“Upon the completion of the acquisition, we anticipate higher rental reversion,” Valerie said. — Bernama
