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KIP REIT unitholders greenlight RM80 mil KIPMall Kota Warisan acquisition

KUALA LUMPUR (Oct 4): Unitholders of KIP Real Estate Investment Trust (KIP REIT) on Wednesday voted in favour of the REIT’s proposal to acquire KIPMall Kota Warisan in Sepang for RM80 million.
The resolution was duly passed at its extraordinary general meeting (EGM) after 87 unitholders who collectively hold 226.64 million units in KIP REIT, which represent 99.98% of voting units voted for the acquisition, according to its filing to Bursa Malaysia.
KIPMall Kota Warisan houses a one-and-a-half-storey retail centre, with a net lettable area of approximately 17,300 sq m on a freehold land in Dengkil, Sepang in Selangor.
Consequently, the resolution for the proposed private placement of up to 12.27 million new units in KIP REIT to raise RM10 million at an issue price to be determined later.
In June this year, KIP REIT announced it plans to buy KIPMall Kota Warisan for RM80 million cash from Cahaya Serijaya Sdn Bhd, while the proposed private placement will partially fund the acquisition.
“The outcome of both the annual general meeting (AGM) and EGM represents a resounding vote of confidence and wholehearted endorsement from our committed unitholders.
“This serves as a testament of the confidence and belief that our unitholders have in the strategic direction and decisions made by KIP REIT,” KIP REIT chief executive officer Valerie Ong Pui Shan said.
Ong said that the REIT’s retail properties have seen extremely encouraging occupancy rates, with an average occupancy rate of 92.3% for the financial year of 2023 (FY2023).
“This is proof that we are attracting the right shopper and tenant mix. Looking ahead, we are on track to complete the acquisition of our eighth retail asset, KIPMall Kota Warisan by the first quarter of 2024 (1Q2024). We are excited to continue growing the KIP REIT portfolio and generate value for our unitholders,” she added.
KIP REIT units closed half a sen or 0.56% higher to 89.5 sen on Wednesday, bringing a market capitalisation of RM539.64 million.
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Source: EdgeProp.my

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