Deputy Minister of Finance Witness First REIT to list in 2017 as KiP REIT Debuts on Bursa Main Market

Deputy Minister of Finance Witness First REIT to list in 2017 as KiP REIT Debuts on Bursa Main Market

  • First REIT to list on Bursa Main Market in 2017
  • Initial portfolio acquisitions consist of 5 KiP Marts and 1 KiP Mall in key catchment townships in the Southern and Central region of Peninsular Malaysia
  • Investment strategy anchors on hybrid community-centric retail centres focused on fresh market and daily essentials

Kuala Lumpur, 6 February 2017 – Hybrid community-centric retail Real Estate Investment Trust, KIP REIT today made its debut on the Main Market of Bursa Malaysia Securities Berhad under the stock code/name of 5280 / KIP REAL ESTATE INVESTMENT TRUST on the property/ REIT sector. The listing ceremony was graced by YB Dato’ Lee Chee Leong, Deputy Minister of Finance Malaysia as he witnessed the ‘hitting of the gong’ by KIP REIT founders and promoters Dato’ Chew Lak Seong and Dato’ Eric Ong Kook Liong.

The first REIT to be listed on Bursa Main Market this year, KIP REIT recently held an Initial Public Offering (“IPO”) to raise RM234.2 million to be used mainly for the acquisitions of the REIT’s initial portfolio consisting of 5 KiP Marts located in Tampoi, Kota Tinggi, Masai, Senawang and Melaka as well as a neighbourhood retail centre known as KiP Mall located in Bangi.

The portfolios are strategically located in growing catchment townships in the Southern and Central regions of Peninsular Malaysia. Most of Kip’s tenants offer fresh market and daily needs and necessities of shoppers. Hence, its strength is in its investment strategy that anchors upon consumers’ need for value-for-money products and services especially in the current economic climate.

In the recent IPO exercise, KIP REIT saw its 10.2 million Offer Units made available to the Malaysian Public oversubscribed by 5.07 times. The Institutional Offering of 220.65 million Offer Units were also oversubscribed. The Offer Units were priced at RM1.00 per share.

“KIP REIT’s Debt to Asset Ratio is currently approximately 14.8%, which is lower than that of the average Malaysian REIT, of approximately 32.0% as at 30 September 2016. As such, we have the option to undertake borrowings for future acquisitions or any asset enhancement that may strengthen our overall business and financial standing,” said Lim Han Gie, Chief Executive Officer of KIP REIT Management Sdn Bhd.

“The Company has the First Rights of Refusal to potentially acquire five new KiP Marts that are in the pipeline, located in Johor, Pahang, Kedah, Selangor and Negeri Sembilan. Of the five new properties, KiP Mart Kota Warisan has already been completed whilst the rest are in different stages of construction,” he added.

KIP REIT’s Gross Rental Income for the past 3 financial years have been growing steadily from RM48.30 million in 2014, RM51.63 million in 2015 and RM53.0 million in 2016. These growth are achieved through rental increment, organic growth and acquisitions.

CIMB Investment Bank Berhad is the appointed Principal Adviser, Sole Bookrunner for the Institutional Offering and Underwriter for the Retail Offering of the IPO exercise.

 

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