KIP Real Estate Investment Trust (KIP REIT) has recently made a significant move in the property market with the proposed acquisition of DPulze Shopping Centre in Cyberjaya for RM320 million cash. This seven-storey commercial building, which includes two basement levels, offers a diverse range of amenities such as a supermarket, retail spaces, a cinema, a fitness centre, and an entertainment centre. It is part of the larger DPulze Cyberjaya development, which also features two hotels and service apartments.
The acquisition of DPulze Shopping Centre represents a strategic investment for KIP REIT, as it aligns with the company’s goal of providing unitholders with regular and stable income distribution. By expanding its portfolio of retail assets, KIP REIT aims to enhance its long-term growth prospects and strengthen its position in the market. The property has been valued at RM321 million, and KIP REIT is able to secure a RM1 million discount on the purchase price.
To fund the acquisition, KIP REIT will utilize a combination of bank borrowings and proceeds from a proposed placement of new shares. The company plans to issue up to 180 million new shares to raise up to RM146.7 million, as well as a placement of up to 15 million units to major shareholder Datuk Ong Kook Liong and/or persons connected with him. The issue price for the placement units will be determined at a later date and may vary from the illustrative price of 81.5 sen per unit.
Upon completion of the acquisition in the first quarter of 2025, DPulze Shopping Centre will account for 25.22% of KIP REIT’s total retail assets, which are projected to reach RM1.29 billion. This represents a significant increase of 33.72% over the company’s current total retail assets of RM965 million as of March 31, 2024. The addition of DPulze Shopping Centre to KIP REIT’s portfolio will further diversify its retail property holdings and contribute to the overall growth and stability of the company.
KIP REIT’s existing retail property portfolio consists of eight community-centric malls located in suburban areas such as Ipoh, Bangi, Senawang, Malacca, Tampoi, Masai, Kota Tinggi, and Sepang. With the acquisition of DPulze Shopping Centre, KIP REIT is poised to strengthen its presence in the retail property market and continue to deliver value to its stakeholders. This strategic move reflects the company’s commitment to sustainable growth and long-term success in the real estate investment sector.