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PETALING JAYA (July 24): KIP Real Estate Investment Trust (KIP REIT) has cleared a key milestone in its proposed RM435 million acquisition of Setapak Central Mall, after unitholders approved the acquisition and related placement proposals at an extraordinary general meeting (EGM) on Thursday.
In separate Bursa Malaysia filings on Thursday (July 23), KIP REIT said the sale and purchase agreement (SPA) for the acquisition of Setapak Central Mall became unconditional on the same day.
The development follows the approval of four ordinary resolutions by unitholders, covering the proposed acquisition of the Kuala Lumpur retail asset, a proposed placement of up to 220 million new units, and proposed allotments to Dato’ Ong Choo Meng and Dato’ Ong Kook Liong under the placement exercise.
Acquisition receives near-unanimous approval
The proposed acquisition of Setapak Central Mall received 99.99% approval from votes cast, with 330.01 million units voting in favour and 42,200 units against.
The asset comprises a three-storey shopping mall with a basement car park and 47 accessory parcels located at No. 67, Jalan Taman Ibu Kota, Setapak, Kuala Lumpur.
KIP REIT is acquiring the property from Festiva Mall Sdn Bhd for a cash consideration of RM435 million.
Placement proposal approved
The proposed placement of up to 220 million new KIP REIT units, representing approximately 22.95% of existing issued units, was also approved by unitholders.
The resolution received 87.25% approval, with 135.59 million units voting in favour and 19.81 million units against.
Separately, the proposed allotment of up to 30 million placement units to Dato’ Ong Choo Meng was approved with 91.58% support, while the proposed allotment of up to 10 million placement units to Dato’ Ong Kook Liong received 92.15% approval.
Acquisition process advances
The poll results were verified by independent scrutineer Sky Corporate Services Sdn Bhd.
With the SPA now unconditional, KIP REIT has moved another step towards completing the Setapak Central Mall acquisition. The REIT did not disclose the expected completion date in Thursday’s announcement.
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