KUALA LUMPUR, April 27 (Bernama) -- KIP Real Estate Investment Trust (KIP REIT), via its trustee Pacific Trustees Bhd, has entered into a conditional sale and purchase agreement for the proposed acquisition of Setapak Central for RM435 million.
In a filing with Bursa Malaysia today, the group said the acquisition involves a leasehold three-storey shopping mall with a basement car park, strategically located in Setapak, Kuala Lumpur.
“The acquisition will be funded through a combination of bank borrowings and a private placement, broadly reflecting a 60:40 funding mix,” it said.
KIP REIT said the property has a high occupancy rate of 99.9 per cent as at Feb 28, 2026, and a net lettable area (NLA) of 514,777 square feet, which is expected to expand the group’s current portfolio NLA of 3.3 million square feet by approximately 15.6 per cent.
“It recorded a net property income of RM31.3 million for the financial year ended 2025, translating into an attractive yield of 7.2 per cent, underpinning its ability to deliver stable and sustainable income to KIP REIT.
“Upon completion, Setapak Central will become the group’s 19th asset and its largest by value,” it noted.
The REIT said the proposed acquisition is expected to enhance KIP REIT’s portfolio quality and scale, increasing its assets under management from RM1.7 billion to RM2.1 billion, surpassing its RM2 billion target set for 2027 ahead of schedule.
“The enlarged total issued units will strengthen the group’s market capitalisation to approximately RM1 billion, potentially enhancing its corporate profile and improving access to capital markets, which may support more competitive financing costs over time.
“The acquisition is also expected to be distribution per unit (DPU)-accretive in the long term, in line with KIP REIT’s strategy of delivering sustainable returns to unitholders,” said KIP REIT.
Meanwhile, its chief executive officer, Valerie Ong, said the proposed acquisition of Setapak Central marks another important step in KIP REIT’s growth journey.
“We remain focused on quality growth by driving rental reversions, sharpening leasing strategies, and executing asset enhancement initiatives to deliver sustainable DPU growth while keeping our assets relevant to evolving consumer needs,” she added.
-- BERNAMA
