Focused on hybrid community-centric retail centres, KIP Real Estate Investment Trust (REIT) is set to be listed on the Main Market of Bursa Malaysia Securities on 6 February, reported Bernama.
As the first Reit to be listed on Bursa Malaysia this year, KIP REIT expects to raise RM232.2 million from its initial public offering, said Lim Han Gie, chief executive officer of the REIT’s manager, KIP REIT Management Sdn Bhd.
Notably, the IPO will involve 234.15 million units that are offered at RM1 per unit. Of these, 220.65 million units will be set aside for institutional and selected investors, while the other 13.5 million units will be offered to eligible directors and employees of the manager as well as the public.
Upon KIP REIT’s listing, its total market capitalisation is estimated to stand at RM505.3 million, based on the enlarged share capital of 505.3 million units.
Lim revealed that the proceeds will be primarily used to acquire property assets consisting “five KiP Marts located in Tampoi, Kota Tinggi, Masai, Senawang and Melaka, and a neighbourhood retail centre known as KiP Mall in Bangi”.
He noted that KIP REIT offers a unique portfolio as its properties were hybrid – between conventional shopping centre and a traditional fresh wet market – with an occupancy rate of 85.3 percent on average.
“As a one-stop hybrid community-centric retail centre, we offer conducive environment for small and medium traders to sustain and grow their businesses, coupled with our active advertising and promotion (A&P) programmes to support them,” said Lim.
“Hence, we represent strength during the adverse economic conditions when consumers are more prudent in spending and will actively source for value-for-money products or services that are commonly found in KiP Mart.”
Moreover, KiP Mall Kota Warisan in Sepang will also be on the list of KIP REIT’s right of first refusal. Currently, the mall is under construction, with completion set in Q2 2017, said Lim.
Image sourced from Property Investment New Zealand
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
