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- This acquisition makes the group’s first expansion into East Malaysia, underscoring its commitment to broadening its geographical footprint and reinforcing its long-term growth strategy.
KUALA LUMPUR (Sept 30): KIP Real Estate Investment Trust’s (KL:KIPREIT) trustee, Pacific Trustees Bhd, has completed its acquisition of an industrial property in Bintulu, Sarawak, for a total purchase consideration of RM28.7 million.
This acquisition makes the group’s first expansion into East Malaysia, underscoring its commitment to broadening its geographical footprint and reinforcing its long-term growth strategy.
“It was fully funded through cash consideration, reflecting KIP REIT’s prudent capital management and robust balance sheet.
“The property is tenanted by Hextar Solutions Sdn Bhd under a three-year fixed-term agreement, with automatic renewals for four consecutive three-year terms, ensuring long-term rental stability,” it said in a statement on Tuesday.
KIP REIT said its portfolio comprises 17 properties across Peninsular Malaysia, Sabah and Sarawak following this acquisition.
“Including assets pending completion, the group’s combined net lettable area will exceed 3.5 million sq ft, with a total portfolio valuation of approximately RM1.7 billion.
“Since the start of the financial year ending June 30, 2026, the group has completed three strategic acquisitions, KIPMall Desa Coalfields, KIP Kuantan and the Bintulu industrial asset, marking steady progress towards its RM2 billion asset under management (AUM) target,” said KIP REIT.
Meanwhile, its chief executive officer Valerie Ong (pictured) said the acquisition is both a geographic milestone and an opportunity to deepen its industrial asset base while maintaining its core focus on retail assets.
“Having a strong and reputable tenant provides both stability and a foundation to grow further in the region.
“As we move towards our RM2 billion AUM target, our focus remains on building a well-diversified portfolio that balances resilience with long-term growth. Above all, we want our unitholders to see consistent, sustainable value creation from every step we take,” she said.
The fully occupied, 15-year-old property comprises a double-storey office integrated with a six-storey processing plant, with a total net lettable area of 207,315 sq ft and an appraised value of RM28.8 million as at June 28, 2024.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
