KIP REIT buys industrial properties in Pulau Indah for RM78.7mil


KUALA LUMPUR: KIP Real Estate Investment Trust (KIP REIT) has proposed to accumulate three industrial properties in Pulau Indah Industrial Park, Port Klang, Selangor for RM78.7mil, marking its maiden acquisition of industrial belongings.

In an announcement, KIP REIT mentioned the conditional sale and buy settlement was inked with Hextar Chemicals Sdn Bhd, Hextar Industrial Chemicals Sdn Bhd and Teju Logistics Sdn Bhd.

The market worth of the properties is RM78.9mil, primarily based on the valuation on June 20, 2022, by Henry Butcher Malaysia (Selangor) Sdn Bhd.

With the proposed deal, about 350,000 sq ft of lettable space will probably be added to KIP REIT’s portfolio.

The industrial properties will probably be leased to associated corporations of the Hextar group on a triple internet foundation for 15 years at a complete preliminary annual rental of RM5.1mil, with built-in agreed rental escalations of 13% due on the fourth, seventh and eleventh 12 months.

The proposed acquisitions and leases are deemed associated social gathering transactions and can want the approval of the unitholders of KIP REIT in addition to shareholders of Hextar Global Bhd.

Datuk Eddie Ong Choo Meng, the key shareholder of Hextar, can also be a significant unitholder of KIP REIT.

The proposed deal is anticipated to be accomplished in the second quarter of 2023.

KIP REIT Management Sdn Bhd govt director Datuk Ong Kook Liong mentioned the proposed deal was in line with its amended funding coverage as at September 29, 2020.

“While we will continue to manage all our retail-focused assets, we will also continue to explore growth opportunities in the industrial and warehousing sub-sectors to grow our income base investment portfolio of industrial assets,” he mentioned.

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