PETALING JAYA: KIP Real Estate Investment Trust
(KIP-REIT) has lifted its assets under management (AUM) to RM2.2bil following the completion of its RM435mil acquisition of Setapak Central.
This takes the group beyond its RM2bil AUM target set for 2027.
Yesterday, it announced the successful completion of its acquisition of Setapak Central Mall, which has been officially renamed KIPMall Setapak.
This marked the addition of its 20th property and expanding its presence in a strategic urban location within Klang Valley.
Following this, KIP-REIT’s total net lettable area has increased by around 16% to 3.8 million sq ft.
KIP-REIT chief executive officer Valerie Ong said that KIPMall Setapak would provide further synergies across KIP-REIT’s portfolio, particularly through its enlarged tenant base.
“We believe there are significant synergies because KIP-REIT has more than 1,300 tenants and, including Setapak Central, that number will increase to around 1,500.
“This gives us opportunities to cross-sell and upsell across the portfolio,” Ong told reporters at KIPMall Setapak.
She added KIP-REIT’s gearing now hovers around 41% following the completion of the Setapak acquisition, but said that the group remains encouraged by the potential of the newly acquired mall, including changes to its tenant mix and the addition of new brands such as Jaya Grocer, Oriental Kopi and Panda Eyes.
KIPMall Setapak brings a stable income profile to the group’s portfolio, supported by strong occupancy.
The property recorded a net property income (NPI) of RM31.3mil for the financial year ended 2025 (FY25), equivalent to 24.1% of KIP-REIT’s FY26 NPI.
Based on the acquisition price of RM435mil, this translates into an attractive yield of 7.2%, supporting KIP-REIT’s objective of delivering stable and sustainable income to its unitholders.
KIP-REIT said income from KIPMall Setapak would be recognised from the second quarter of FY27 onwards, with the mall’s tenant mix set to be further strengthened by established brands.
Ong said KIP-REIT would work towards sustaining its distribution per unit this financial year.
She further pointed out that the group’s portfolio remains defensive and resilient by nature.
“The price points remain accessible, so there is strong support from the surrounding communities.
“In fact, since Covid-19, we have seen consumers increasingly gravitate towards community malls where they can get everything under one roof,” she said.
Ong added that KIP-REIT’s community- centric neighbourhood mall model continued to benefit from sustainable consumer spending, particularly as most of its malls are located in mature townships.
