KUALA LUMPUR, June 16 (Bernama) -- KIP Real Estate Investment Trust (REIT) plans to acquire KIPMall Kota Warisan for RM80 million, while simultaneously proposing to undertake a private placement to raise gross proceeds of approximately RM10 million to partially fund the proposed acquisition.
Pacific Trustees Bhd, acted as the trustee for and on behalf of KIP REIT had entered into a conditional sale and purchase agreement with Cahaya Serijaya Sdn Bhd today for the proposed acquisition of KIPMall Kota Warisan.
“As for the private placement, the issue price will be determined later by the board,” it said in a filing with Bursa Malaysia.
KIPMall Kota Warisan is located in Sepang, Selangor, within the commercial development identified as “KIP Sentral @ Sepang”.
KIP Sentral @ Sepang comprises KIPMall Kota Warisan, two towers of 466 units of serviced residence/SOHO units and 132 units of semi-detached and terraced boutique shoplots.
KIP REIT said the purchase price will be funded by a combination of bank borrowings, the balance of unutilised proceeds raised from the previous private placement exercise under the general mandate and proceeds to be raised from the proposed private placement.
On the rationale of the acquisition, KIP REIT said the proposed acquisition is in line with the investment policy and objective of the firm to provide unitholders with regular and stable income distributions as well as sustainable long-term growth in unit price, distribution income and capital growth while maintaining an appropriate capital structure.
“The proposed acquisition would also serve to enhance the diversification of KIP REIT’s portfolio of retail investment properties.
“Upon completion of the proposed acquisition, KIPMall Kota Warisan will represent 8.58 per cent of KIP REIT’s enlarged total retail assets of RM932 million and a 9.39 per cent increase over KIP REIT’s total retail assets under management as at June 30, 2022 of RM852 million,” it added.
-- BERNAMA
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