KIP REIT first REIT to join bourse in 2017

KUALALUMPUR: KIPRealEstate Investment Trust (REIT), which focuses on hybrid communitycentric retail centres, is expected to be the the first REIT to be listed on Bursa Malaysia next year.

Lim Han Gie, chief executive officer of KIP REIT Management Sdn Bhd, the manager of KIP REIT, said the trust fund would be listed on the Main Market of Bursa Malaysia Securities Bhd on February 6, 2017.

Its initial public offering (IPO) is expected to raise gross proceeds of RM232.2 million.

“The bulk of the proceeds will be used purchase property assets consisting of five KiP Marts located in Tampoi, Kota Tinggi, Masai, Senawang and Melaka, and a neighbourhood retail centre known as KiP Mall in Bangi.

“The portfolios are strategically located in growing catchment townships in the southern and central

The bulk of the proceeds will be used purchase property assets consisting of five KiP Marts located in Tampoi, Kota Tinggi, Masai, Senawang and Melaka, and a neighbourhood retail centre known as KiP Mall in Bangi. Lim Han Gie, KIP REIT Management chief executive officer, KIP REIT manager

regions of Peninsular Malaysia.

“A small portion of the proceeds will be used for listing expenses,” he said in a media briefing in conjunction with the launch of KIP REIT prospectus here.

The IPO involved 234.15 million units at RM1 per unit, out of which 220.65 million units will be allocated to institutional and selected investors, while the remaining 13.5 million units will be offered to the public, eligible directors and employees of the manager.

Based on the enlarged share capital of 505.3 million units, the total market capitalisation of KIP REIT upon listing is estimated to be at RM505.3 million.

Lim said investors would have an opportunity to invest in a unique portfolio as KIP REIT’s properties were hybrid - between a traditional fresh wet market and conventional shopping centre, which cater to

the lower- and middle-income customers.

“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.

“Hence, we represent strength during the adverse economic conditions when consumers are more prudent in spending and will actively source for value-formoney products or services that are commonly found in KiP Mart,” he said.

The occupancy rate of the properties was consistent averaging at 85.3 per cent, he said.

Besides that, Lim said KiP Mall Kota Warisan in Sepang, which is currently under construction and expected for completion in the second quarter of 2017, will be on KIP REIT’s list of the right of first refusal. — Bernama