Published on May 27, 2024
KUALA LUMPUR: KIP Real Estate Investment Trust (KIP REIT) has taken a significant step towards expanding its retail property portfolio by entering into a conditional sale and purchase agreement with DPulze Ventures Sdn Bhd. The proposed acquisition involves DPulze Shopping Centre, a prominent commercial building located in Cyberjaya, for a cash consideration of RM320 million.
The DPulze Shopping Centre: A Strategic Addition
The seven-storey DPulze Shopping Centre boasts two basement levels and offers a diverse mix of amenities, including:
- A supermarket
- Retail spaces
- A cinema
- A fitness center
- An entertainment center
This integrated development is part of the larger DPulze Cyberjaya project, which also includes two hotels and service apartments. KIP REIT’s decision to acquire DPulze Shopping Centre aligns with its investment objectives and long-term growth strategy, aiming to provide unitholders with regular and stable income distribution.
Strategic Discount and Funding
KIP REIT secured a favorable deal by acquiring the property at a RM1 million discount, valuing it at RM321.0 million. The acquisition will be funded through a combination of bank borrowings and proceeds from a proposed placement of up to 180 million new shares in KIP REIT, raising up to RM146.70 million. Additionally, a proposed placement of up to 15 million units to major shareholder Datuk Ong Kook Liong and/or related parties will further support the acquisition.
Portfolio Impact
Upon completion of the exercise in the first quarter of 2025, DPulze Shopping Centre will represent 25.22% of KIP REIT’s enlarged total retail assets, which will amount to RM1.29 billion. This acquisition signifies a 33.72% increase over KIP REIT’s total retail assets of RM965 million under management as of March 31, 2024. KIP REIT’s commitment to strategic growth and enhancing its retail asset portfolio positions DPulze Shopping Centre as a valuable addition. As Cyberjaya continues to thrive as a technology hub and residential area, this acquisition reflects KIP REIT’s confidence in the region’s long-term potential.
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Disclaimer: The information provided in this article is based on publicly available sources. MyPropertyPlaces.com does not endorse any investment decisions based solely on this content. Readers are advised to conduct their own due diligence and seek professional advice before making any investment.
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