Unitholders approve KIP REIT's RM118mil acquisition, RM132mil fundraising plan
The assets involved include KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan.
These properties are expected to generate a total revenue of RM11.3 million and a net property income of RM8 million in their first full year of operations.
KIP REIT said the figures represent 11.7 per cent of its revenue and 11.6 per cent of its net property income for the nine-month period of financial year 2025, which stood at RM96.2 million and RM68.8 million respectively, underscoring the earnings-accretive nature of the acquisitions.
"The newly acquired assets are expected to deliver an average initial yield of 6.8 per cent, underpinned by stable, long term lease structures," it said in a Bursa Malaysia filing.
To help finance part of the acquisitions and future enhancement works, the REIT said it will carry out a private placement of up to 160 million new units, aiming to raise gross proceeds of around RM132.0 million.
"The placement has entered its book-building phase, with price-fixing targeted by mid-August 2025," it said.
KIP REIT said proceeds from the placement will go towards RM106.6 million for partial settlement of the acquisitions, RM21.9 million for asset enhancement initiatives at KIPMall Tampoi and RM3.9 million for estimated expenses.
It added that completion and allotment of the new units are expected by early September 2025.
Chief executive officer Valerie Ong said the new assets will provide solid recurring income and enhance KIP REIT's presence in key suburban and high-growth areas like Selangor and Kuantan.
"We are encouraged by early investor interest in the placement. With disciplined capital deployment and active asset management, we remain confident in delivering sustainable long-term returns," she said.
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