Latest news with #RM118
The Sun
a day ago
- Business
- The Sun
KUP REIT unitholders approve RM118 million acquisitions, private placement
PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has received unitholders' approval for its latest strategic expansion plan, which includes the acquisition of four retail properties in Selangor and Kuantan for RM118 million, alongside a private placement exercise to raise RM132 million. The newly approved assets – KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan – are projected to generate RM11.3 million in revenue and RM8.0 million in net property income (NPI) in their first full year of operations. This equates to 11.7% and 11.6% of KIP REIT's nine-month FY2025 revenue (RM96.2 million) and NPI (RM68.8 million), respectively, underscoring the earnings accretive nature of the expansion. These assets are expected to deliver an average initial yield of 6.8%, supported by long-term, stable lease structures. KIP REIT CEO Valerie Ong expressed appreciation for the strong backing from unitholders, noting that the acquisitions align with the REIT's strategy to strengthen its income-generating portfolio and support sustainable distribution per unit growth. 'The new assets will provide meaningful recurring income while expanding our footprint in high-potential suburban and emerging growth areas like Selangor and Kuantan. We are also encouraged by early investor interest in the private placement. With disciplined capital management and a proactive asset strategy, we are confident in delivering sustainable long-term returns,' she said. KIPMall Desa Coalfields features a well-diversified tenant mix, while Lotus's Indera Mahkota is anchored by a 15-year master lease agreement with built-in rental escalations. The two commercial buildings include shop lots and a KFC outlet, both secured by multi-year leases with renewal options, providing recurring income from established brands. To fund part of the acquisitions and upcoming upgrades, KIP REIT will undertake a private placement of up to 160 million new units, targeting gross proceeds of about RM132 million. The book-building phase is underway, with price-fixing scheduled for mid-August. Of the total proceeds, RM106.6 million will be used for the partial settlement of the acquisitions, RM21.9 million will be allocated for asset enhancement initiatives (AEI) at KIPMall Tampoi, and RM3.9 million will be allocated for estimated expenses. The AEI at KIPMall Tampoi forms part of the group's ongoing asset optimisation strategy, aimed at improving tenant mix, shopper experience, and rental yields. Planned upgrades include façade enhancements, interior refurbishments, and enhanced amenities to attract higher footfall and quality tenants. Completion and allotment of the new placement units are expected by early September 2025. This latest round of acquisitions and capital raising marks a significant milestone in KIP REIT's growth roadmap. Upon full completion – including pending acquisitions – the group's total portfolio value is projected to reach approximately RM1.6 billion, comprising over 3.4 million square feet of net lettable area. The move also strengthens KIP REIT's geographical diversification, adding exposure to Pahang and reinforcing its presence along the East Coast, complementing its existing footprint in the Klang Valley, Johor and Perak.
The Sun
a day ago
- Business
- The Sun
KIP REIT unitholders approve RM118 million acquisitions, private placement
PETALING JAYA: KIP Real Estate Investment Trust (KIP REIT) has received unitholders' approval for its latest strategic expansion plan, which includes the acquisition of four retail properties in Selangor and Kuantan for RM118 million, alongside a private placement exercise to raise RM132 million. The newly approved assets – KIPMall Desa Coalfields, Lotus's Indera Mahkota, and two commercial buildings within an integrated development in Kuantan – are projected to generate RM11.3 million in revenue and RM8.0 million in net property income (NPI) in their first full year of operations. This equates to 11.7% and 11.6% of KIP REIT's nine-month FY2025 revenue (RM96.2 million) and NPI (RM68.8 million), respectively, underscoring the earnings accretive nature of the expansion. These assets are expected to deliver an average initial yield of 6.8%, supported by long-term, stable lease structures. KIP REIT CEO Valerie Ong expressed appreciation for the strong backing from unitholders, noting that the acquisitions align with the REIT's strategy to strengthen its income-generating portfolio and support sustainable distribution per unit growth. 'The new assets will provide meaningful recurring income while expanding our footprint in high-potential suburban and emerging growth areas like Selangor and Kuantan. We are also encouraged by early investor interest in the private placement. With disciplined capital management and a proactive asset strategy, we are confident in delivering sustainable long-term returns,' she said. KIPMall Desa Coalfields features a well-diversified tenant mix, while Lotus's Indera Mahkota is anchored by a 15-year master lease agreement with built-in rental escalations. The two commercial buildings include shop lots and a KFC outlet, both secured by multi-year leases with renewal options, providing recurring income from established brands. To fund part of the acquisitions and upcoming upgrades, KIP REIT will undertake a private placement of up to 160 million new units, targeting gross proceeds of about RM132 million. The book-building phase is underway, with price-fixing scheduled for mid-August. Of the total proceeds, RM106.6 million will be used for the partial settlement of the acquisitions, RM21.9 million will be allocated for asset enhancement initiatives (AEI) at KIPMall Tampoi, and RM3.9 million will be allocated for estimated expenses. The AEI at KIPMall Tampoi forms part of the group's ongoing asset optimisation strategy, aimed at improving tenant mix, shopper experience, and rental yields. Planned upgrades include façade enhancements, interior refurbishments, and enhanced amenities to attract higher footfall and quality tenants. Completion and allotment of the new placement units are expected by early September 2025. This latest round of acquisitions and capital raising marks a significant milestone in KIP REIT's growth roadmap. Upon full completion – including pending acquisitions – the group's total portfolio value is projected to reach approximately RM1.6 billion, comprising over 3.4 million square feet of net lettable area. The move also strengthens KIP REIT's geographical diversification, adding exposure to Pahang and reinforcing its presence along the East Coast, complementing its existing footprint in the Klang Valley, Johor and Perak.
The Star
2 days ago
- Automotive
- The Star
Competition in EV space to intensify on policy shifts
PETALING JAYA: The automotive industry is approaching a structural inflection point with key policy shifts expected within the next six months, amid intensifying competition in the electric vehicle (EV) space, according to a research house. The government will need to decide by year-end whether to end the completely-built-up EV import tax exemptions and Approved Permit regime, said BIMB Securities Research. The decision will shape the competitive dynamics of the local EV market, either accelerating liberalisation and inviting more aggressive price competition or maintaining a controlled environment that protects local players. Those with strong exposure to electrification, efficient sourcing structures, and high local content will be best positioned to navigate the transition, said BIMB Research. While short-term demand risks persist, particularly from policy uncertainty and price volatility, credible reform execution could unlock medium-term growth and margin stability. It retained its 'neutral' stand on the sector with a positive bias, favouring original equipment manufacturers aligned with themes of affordability, EV adoption and localisation. It reiterated its 'hold' call on Sime Darby Bhd (with a target price of RM1.76 a share) and MBM Resources Bhd (RM4.30 a share). It kept its 'sell' on Bermaz Auto Bhd (65 sen a share). Despite all companies under its coverage having EV exposure, the research house liked Sime Darby for its robust EV portfolio (BYD, BMW) and resilient internal combustion engine (ICE) volumes via Perodua. This balanced mix would ensure defensive earnings amid market transition and positions Sime Darby as a structural winner in both the ICE and EV spaces. BYD slashed the price of its 2025 Atto 3 Ultra by RM44,000 to RM123,800, with a special launch offer of RM118,800 for early buyers, placing it in direct price parity with Proton's Emas 7 Premium (RM119,800). This move has reignited speculation of an impending EV price war. It favoured controlled growth, as it aligned with the government's clear policy direction. The extension of tax incentives for completely-knocked-down EV until end-2027 reinforced Malaysia's commitment to fostering local EV production, supply chain localisation and long-term industrial development, it said.
The Sun
28-06-2025
- Business
- The Sun
Sabo dam in Baling to finish early, boosting flood safety
BALING: The RM22.80 million Sabo Dam in Sungai Kupang is set for early completion, offering enhanced flood protection for Baling's 5,000 residents. Home Minister Datuk Seri Saifuddin Nasution Ismail confirmed the project is now 62% complete, surpassing the initial 20% target. Contractors have assured the dam will be ready two months ahead of schedule by late next year. 'It's rare for such projects to progress this swiftly,' Saifuddin said during a site visit as Kedah state development action council joint chairman. He also shared updates on Baling's flood mitigation plan. Phase 1, costing RM9.6 million, is 12% complete and set for November 2025, while Phase 2 (RM118 million) is at 3.68% progress, with a 2029 deadline. 'Baling recorded 17 floods in 2024 alone, up from 10 in 2023,' he noted, citing Irrigation and Drainage Department data. Additionally, Saifuddin inspected 17 replacement homes for Kampung Iboi's 2022 debris flow victims. The RM3 million project is 95% done, with utility works pending before handover by mid-July.
Barnama
28-06-2025
- Politics
- Barnama
Sabo Dam In Baling Expected To Be Completed Ahead Of Schedule
BALING, June 28 (Bernama) -- The RM22.80 million Sabo Dam in Sungai Kupang near here is expected to be completed ahead of schedule, Home Minister Datuk Seri Saifuddin Nasution Ismail said. The dam, which is currently at 62 per cent progress as opposed to the scheduled 20 per cent, will reduce the risk of debris flows that threaten the safety of the 5,000 residents in Baling Town, he added. 'Contractors have given assurances that the project will be completed two months ahead of the original schedule, at the end of next year… it's rare that such a project develops at such a pace,' he told reporters after visiting the project site in his capacity of Kedah state development action council joint chairman near here today. He also shared that the flood mitigation plan in Baling district was at 12 per cent development for Phase 1 and 3.68 per cent for Phase 2 so far, with Phase 1, costing RM9.6 million, expected to be completed in November next year and Phase 2, costing RM118 million, expected to be completed in January 2029. The flood mitigation projects were of utmost importance to the people in Baling as they faced frequent flooding previously, he said. 'In 2024, Baling was hit by 17 incidents of floods… in 2023 only 10 times… according to data from the Department of Irrigation and Drainage,' he said, pointing out that the flood mitigation plan was part of the Federal Government's efforts to tackle the flooding issue in the district. Saifuddin Nasution also visited the location where 17 replacement houses and facilities are being built for victims of the debris flow that hit Kampung Iboi on July 4, 2022. The project, costing RM3 million, is 95 per cent complete, with only the preparation of utilities for the houses remaining, he added. 'It is expected to be done by the third week of July and when it is settled, we will hand the houses to those affected,' he said.
