Latest news with #RM132
The Sun
22-07-2025
- 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
22-07-2025
- 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 Sun
21-07-2025
- Business
- The Sun
CIMB Thai first-half net profit slips to 1 billion baht
UALA LUMPUR: CIMB Thai Bank PCL, a 94.83%-owned indirect subsidiary of CIMB Group Holdings Bhd, saw its net profit fall 21.8% year-on-year (y-o-y) to 1.01 billion baht (RM132 million) in the first half ended June 30, 2025 (H1'25). In a filing with Bursa Malaysia today, CIMB Thai president and CEO Wut Thanittiraporn said the lower net profit was primarily due to one-off items, namely the adjustment in revenue recognition based on the effective interest rate (EIR) methodology and the additional expected credit loss (ECL) overlay. He said CIMB Thai Group's H1'25 consolidated operating income fell by 257.8 million baht to 6.78 billion baht, mainly due to lower interest income on loans. He added that this was partially offset by a higher net fee and service income, which increased 30.5 million baht. Operating expenses for the period also declined by 832.7 million baht, or 19.1%, due to lower impairment losses on properties for sale and lower specific business tax resulting from lower interest income, partially offset by higher employee expenses. 'This consequently improved the cost-to-income ratio to 52.1% in 1H 2025 compared to 62% in the first half of last year. 'Net interest margin (NIM) over earning assets stood at 1.9%t in 1H 2025, compared to 2.2%in 1H 2024, arising from lower interest income on loans,' Wut added. As at June 30, 2025, total gross loans (inclusive of loans guaranteed by other banks and loans to financial institutions) stood at 244.2 billion baht, a decrease of 2.8% from Dec 31, 2024. Deposits (inclusive of bills of exchange, debentures and selected structured deposit products) stood at 316.5 billion baht, a decrease of 2.3% from 324 billion baht as at end-December 2024. The gross non-performing loans (NPL) stood at 6.3 billion baht, with a flat gross NPL ratio of 2.6%. 'The gross NPL ratio is reflective of CIMB Thai Group's stringent credit risk underwriting, effective risk management policies, improvement in loan collection processes and the continued management of the Bank's NPLs,' he said. Wut said CIMB Thai Group's loan loss coverage ratio stood at 155.9 per cent as at June 30, 2025, from 149.0 per cent as at Dec 31, 2024. – Bernama
New Straits Times
08-07-2025
- Business
- New Straits Times
UniKL-ASTI to drive sustainable transport innovation in northern peninsula
KANGAR: The establishment of Universiti Kuala Lumpur Asia Sustainable Transportation Institute (UniKL-ASTI) in Perlis will serve as a major catalyst in advancing sustainable transportation and logistics in the northern region. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the institute, which broke ground today and is slated for completion by June 25, 2028, will serve as a premier reference and centre of excellence, equipped with modern infrastructure to meet the evolving needs of the transportation industry. "I view the establishment of UniKL-ASTI as a highly strategic move, not just for Perlis but also for the national education and logistics landscape," he said in his speech at the groundbreaking ceremony. The groundbreaking event was opened by the Raja of Perlis Tuanku Syed Sirajuddin Jamalullail. Zahid, who is also Rural and Regional Development Minister, said the 60-acre campus, located next to the Perlis Inland Port (PIP), would complement the development of the PIP mega project. He said the campus was expected to become a key driver for cross-border cargo flow between Malaysia and Thailand, with trade volume projected to hit US$30 billion (RM132 billion) by 2027. "UniKL-ASTI will be a vital component of the regional logistics development ecosystem under the Northern Corridor Economic Region (NCER), potentially positioning Perlis as a new strategic logistics hub in northern Malaysia," he said. UniKL-ASTI will offer a range of diploma and degree programmes in advanced Technical and Vocational Education and Training (TVET) fields, including Heavy Vehicle Maintenance Technology, Logistics and Supply Chain Management, and MRO (Maintenance, Repair and Overhaul) Technology. Meanwhile, the Raja of Perlis said the development of UniKL-ASTI would serve as a reference centre and hub of excellence, fully equipped with conducive infrastructure and support facilities that meet the demands of today's transport and logistics industry. "The institute will benefit the people of Perlis and also those in other northern states," the Ruler said. He emphasised the importance of cultivating a love for knowledge among Malaysians, particularly in Perlis, as knowledge was the foundation of personal and societal development. The event was also graced by the Raja Muda of Perlis Tuanku Syed Faizuddin Putra Jamalullail; Raja Puan Muda of Perlis Tuanku Dr Hajah Lailatul Shahreen Akashah Khalil; Perlis Menteri Besar Mohd Shukri Ramli and Deputy Rural and Regional Development Minister Datuk Rubiah Wang. Kw: NST news, Malaysia news, Raja of Perlis Tuanku Syed Sirajuddin Jamalullail, Deputy Prime Minister, Datuk Seri Dr Ahmad Zahid Hamidi, Universiti Kuala Lumpur Asia Sustainable Transportation Institute (UniKL-ASTI) in Perlis, major catalyst in advancing sustainable transportation and logistics, northern region.
New Straits Times
30-06-2025
- Business
- New Straits Times
Former deputy questions OCM's 'financial prudence' in land swap deal
KUALA LUMPUR: Former Olympic Council of Malaysia (OCM) deputy president Datuk Seri Azim Zabidi has questioned OCM's decision to enter a land swap deal which he claims could potentially strain them financially. Under the agreement between OCM and Malaysian Resources Corporation Berhad (MRCB), the latter will take ownership of OCM's current headquarters - Wisma OCM (0.73 hectare) at Jalan Hang Jebat - in return for building a new RM93 million facility for OCM. The new headquarters - dubbed the Olympic House - will be built on a 5.38 acre plot of government land in Bukit Jalil. OCM will lease the land for a period of 30 years for RM10 million. Azim questioned OCM's financial prudence as the umbrella body will not receive any cash out of the deal. "This deal raises serious questions about OCM's financial prudence and long-term sustainability. Most perplexing is the absence of any cash benefits to OCM, despite Wisma OCM being valued at RM132 million," said Azim in a media statement released today (June 30). "The valuation used in the swap is reportedly lower due to plans to demolish the existing building. "Instead of gaining financial resources, OCM is incurring additional costs and risks. Once the sub lease expires after 30 years, the organisation may be forced to vacate the new premises, potentially facing further financial and operational disruptions. "I am particularly concerned about the lack of a cash component in the deal, especially when OCM is in need of substantial funding to support various International Olympic Committee (IOC) initiatives." Azim added that OCM deserves to have a new headquarters but stressed that the umbrella body should look at other, more financially beneficial alternatives to build their new headquarters. "It is imperative that OCM's leadership seek broader consultation and explore more sustainable alternatives. Transparency from the (OCM) Executive Board is essential. This project should only proceed if it clearly benefits the organisation and its affiliates," he added. "I urge OCM to consider reopening discussions with its neighbour, PNB Merdeka Ventures — the developer of the nearby Merdeka 118 tower — to explore a more strategic location with better financial returns. "Alternatively, OCM could consider constructing a more affordable headquarters, potentially integrated with a two-star hotel, allowing surplus funds to be reinvested into operations and human capital development. "More than 70 years into its existence, OCM is right in wanting to build an image befitting its status as the national Olympic committee of Malaysia. "However it must also focus on modernising its management, investing in human capital, and ensuring long-term financial sustainability for its members — especially in these challenging economic times. "Under these circumstances, OCM may proceed with a land swap deal as long as it is economically viable for the umbrella body in terms of increasing its cash reserves, not by depleting its savings." Azim had served as OCM deputy president between 2018-2021. OCM president Tan Sri Norza Zakaria had previously clarified that the RM93 million valuation was for the land Wisma OCM was situated on, while the rest of the valuation was for the building. Norza said only three companies responded to a request for proposal (RFP) issued by OCM, adding that no developer was keen on taking over the aging Wisma OCM building - built in 1991 - but there was interest in the land. OCM secretary-general Datuk Nasir Ali said it is unlikely PNB would have offered a better deal. "I am not sure whether we did talk to them (PNB) previously, but I do believe PNB is aware and if they really wanted to buy, they would have approached us already," said Nasir when contacted today (June 30). "Even if PNB were to put in an offer, they would have likely done the same thing MRCB did and offered us similar terms." Nasir added that OCM is considering including a hotel as part of their new headquarters. OCM currently rents out a section of Wisma OCM to a hotel operator. This forms part of their current income stream which also includes office and event hall rentals. "We are thinking of including a three or four star hotel to sustain our income. There are not many hotels in Bukit Jalil so there will likely be demand for it," said Nasir. "We will also be renting out office spaces to national sports associations and there will also be an events hall. "We could also invite sporting bodies from around the region to set up their offices there. This is all part of our income generation plan." Nasir added that the purpose of moving to Bukit Jalil extends beyond turning a profit for OCM. "It is not about making money, it is about being in the Kuala Lumpur Sports City (Bukit Jalil) close to our stakeholders. We want headquarters we can be proud of, especially when we have foreigners visiting our facility," said Nasir. "If we wanted to make money we could have just asked the developer to build us a cheaper facility in Nilai or somewhere else and keep the rest of the money but that would defeat the purpose. We would be far away from where all the sports activities are. "I think if we have established ourselves as part of the Kuala Lumpur Sports City, it is likely we can remain there beyond the 30-year lease. "We do not need huge sums of money to run our programmes. IOC programmes often come with (IOC) funding while major sports programmes for NSAs are funded by the National Sports Council. "I agree with Azim that we do need to invest in our human capital as well as other elements such as digitalisation, improving our archives as well as environmental, social and governance (ESG) factors. We will definitely be looking into this." OCM expects construction work for the new headquarters to begin by the end of the year once necessary approvals from local authorities have been obtained. The facility is expected to be completed by late 2028.
