KIP-REIT plans largest asset acquisition at RM320 million

KUALA LUMPUR: KIP Real Estate Investment Fund (KIP-REIT) has proposed to acquire DPulze Shopping Center for RM320 million through a conditional sale and purchase agreement with DPulze Ventures Sdn Bhd.

Based on a report by Nawawi Tie Leung Property Consultants Sdn Bhd dated April 22, 2024, the mall is valued at RM321 million.

KIP-REIT CEO Valerie Ong Pui Shan said that as it was the largest acquisition since the group’s listing in 2017, the move represents a strategic addition to its portfolio.

DPulze Shopping Center in Cyberjaya currently boasts 100% occupancy and is expected to generate revenue of RM22 million for the group per annum, based on the mall’s valuation in April this year.

The shopping center has a net lettable area of ​​311,499 m² and can accommodate over 100 tenants. The shopping center is connected to nearby cities by rail and road.

“The addition of DPulze Shopping Center will not only strengthen our presence in the retail sector, but will also provide the group with stable, long-term income that will generate attractive returns for unitholders,” Ong said at a briefing after the signing ceremony yesterday.

The acquisition is expected to close by the first quarter of 2025 and will be financed through a combination of bank loans and a private placement.

This will increase the group’s assets under management (AUM) to nearly RM1.4 billion.

The proposed private placement, announced simultaneously with the acquisition, is expected to raise gross proceeds of up to RM146.7 million through the issuance of 180 million shares.

“The group’s net debt ratio will increase to 39% after the private placement period, which is within the 50% threshold,” Ong said.