KIP REIT completes RM435m acquisition of Setapak Central Mall

KIP Real Estate Investment Trust has completed its RM435 million purchase of Setapak Central Mall in Kuala Lumpur. The 99-year leasehold mall has a net lettable area of 514,777 sq ft and was 99.89% occupied as at Feb 28, 2026. The acquisition was partly funded by a RM163 million placement of new uni

PETALING JAYA (Sept 30): KIP Real Estate Investment Trust (KIP REIT) has completed its RM435 million acquisition of Setapak Central Mall in Kuala Lumpur. In a Bursa Malaysia filing on Wednesday (Sept 30), the REIT said the acquisition was completed following settlement of the balance purchase consideration.

Pacific Trustees Bhd, acting as trustee for KIP REIT, signed a conditional sale and purchase agreement with Festiva Mall Sdn Bhd on April 27 to acquire the three-storey shopping mall and basement carpark at No. 67, Jalan Taman Ibu Kota, Setapak. According to KIP REIT’s April acquisition announcement, the mall has a net lettable area of 514,777 sq ft, a gross floor area of about 714,196 sq ft and 1,090 parking bays. Its occupancy rate stood at 99.89% as at Feb 28, 2026.

The property is held under strata title Pajakan Negeri 46795/M1/B1/1, together with 47 accessory parcels, on Lot 30119 in Mukim Setapak. Its 99-year leasehold tenure expires on Nov 20, 2106. The purchase consideration matched the RM435 million market value assessed by independent valuer CBRE WTW Valuation & Advisory Sdn Bhd as at March 9, 2026.

KIP REIT also completed a placement of 200 million new units in August, raising gross proceeds of RM163 million. The units were issued at 81.5 sen each and listed on Bursa Malaysia’s Main Market on Aug 27. The April announcement stated that the proposed placement would partly fund the acquisition.

The issue price represented a discount of approximately 4% to the five-day volume-weighted average price (VWAP) of 84.86 sen up to Aug 10, or 3% to the adjusted five-day VWAP of 84.04 sen after accounting for an income distribution of 0.82 sen per unit. CIMB Investment Bank Bhd, Maybank Investment Bank Bhd and UOB Kay Hian (M) Sdn Bhd acted as placement agents.

In April, the manager estimated that the acquisition would increase KIP REIT’s property portfolio value by about 26.1%, from RM1.66 billion to RM2.10 billion. It also expected the acquisition to be distribution-per-unit (DPU) yield accretive over the long term.