KIP REIT Completes Acquisition of 20th Property, Rebrands Setapak Central Mall as KIPMall Setapak

KIP Real Estate Investment Trust (“KIP REIT” or the “Group”) today announced the successful completion of its RM435.0 million acquisition of Setapak Central Mall, adding its 20th property to the portfolio and expanding its presence in a strategic urban location within the Klang Valley.

With the acquisition now complete, Setapak Central Mall has been officially renamed KIPMall Setapak, reinforcing its integration into the KIPMall brand and marking another milestone in KIP REIT’s portfolio expansion strategy.

The three-storey shopping mall, together with its basement car park, has a net lettable area (“NLA”) of 514,777 square feet. Located within the established Setapak neighbourhood, KIPMall Setapak benefits from a mature and diverse catchment comprising established local communities, young families and a sizeable student population, supported by the presence of higher education institutions in the vicinity. Setapak is also strategically located in close proximity to Kuala Lumpur city centre and has evolved into a densely populated residential and commercial hub, with a mix of established neighbourhoods and newer residential developments, providing KIPMall Setapak with a broad and diverse customer catchment.

This latest acquisition increases KIP REIT’s total NLA by approximately 16.0% to 3.8 million square feet and assets under management (“AUM”) to RM2.2 billion, surpassing its RM2.0 billion target for 2027 ahead of schedule. The milestone underscores the Group’s continued progress in executing its portfolio expansion strategy and strengthening its asset base.

KIPMall Setapak brings a stable income profile to the Group’s portfolio, supported by strong occupancy. The property recorded a net property income (“NPI”) of RM31.3 million for the financial year ended 2025, equivalent to 24.1% of KIP REIT’s FY2026 NPI. Based on the acquisition consideration of RM435.0 million, this translates into an attractive yield of 7.2%, supporting KIP REIT’s objective of delivering stable and sustainable income to its unitholders.

Income from KIPMall Setapak will be recognised from Q2FY2027 onwards, with the mall’s tenant mix set to be further strengthened by established brands such as Jaya Grocer, Oriental Kopi, Panda Eyes, HLA and Bambu Lab, a leading 3D printing technology company. The introduction of these brands is expected to enhance the mall’s tenant mix, customer appeal and positioning within its surrounding catchment.

The acquisition was funded through a combination of bank borrowings via AAA-rated medium-term notes and proceeds from a private placement. The private placement contributed RM161.6 million towards the acquisition of KIPMall Setapak, representing 37.1% of the total acquisition funding. Strong participation from existing institutional investors, including increased subscriptions, alongside new investors participating in the rated MTN programme, reflects continued confidence in KIP REIT’s growth trajectory. The corporate exercises also broadened KIP REIT’s institutional investor base, further strengthening the Group’s access to capital and supporting its long-term growth strategy.

Commenting on the successful acquisition, Ms Valerie Ong, Chief Executive Officer of KIP REIT said, “The completion of the acquisition marks an important milestone for KIP REIT as we welcome our 20th property into the portfolio as well as our first property located in Kuala Lumpur. With 20 properties and RM2.2 billion AUM, we remain focused on disciplined portfolio growth, asset enhancement and operational initiatives to strengthen the quality and resilience of our income base.”

She added, “The rebranding of Setapak Central Mall to KIPMall Setapak marks the beginning of a new chapter for the property under the KIPMall brand. We look forward to build on the mall’s established presence and strong occupancy, while exploring opportunities to further enhance its positioning and deliver sustainable value to our unitholders.”

About KIP Real Estate Investment Trust

KIP Real Estate Investment Trust (“KIP REIT”) was listed on the Main Market of Bursa Malaysia Securities Berhad on 6 February 2017, with its principal activity being investing in a portfolio of retail real estate properties. All properties are strategically located in suburban areas, concentrated in residential, commercial, and industrial zones within a five-kilometre radius of catchment areas. Following a change in its investment policy on 12 October 2020, KIP REIT is now able to invest in real estate used for retail, industrial, and commercial purposes to enhance its portfolio.

KIP REIT currently has a portfolio of 20 properties, comprising 6 industrial properties in Pulau Indah, Port Klang, Cheras Jaya, Bintulu and Pasir Gudang; 9 KIPMalls located in Bangi, Tampoi, Kota Tinggi, Masai, Senawang, Melaka, Kota Warisan, Desa Coalfields, Setapak; AEON Mall Kinta City in Ipoh, TF Value-Mart in Gerik, Perak; D’Pulze Shopping Centre in Cyberjaya, Lotus’s Indera Mahkota and KIP Kuantan shoplots. Currently, KIP REIT has a total net lettable area of approximately 3.8 million square feet and total properties valued at approximately RM2.2 billion.

In June 2025, KIP REIT was included in the FTSE4Good Bursa Malaysia Index, reflecting its strengthening ESG practices and commitment to sustainability.