KUALA LUMPUR: KIP Real Estate Investment Trust (REIT) has entered into a conditional sale and purchase agreement with DPulze Ventures Sdn Bhd for the proposed acquisition of DPulze Shopping Centre in Cyberjaya for a cash consideration of RM320 million.
In a filing to Bursa Malaysia, the company said it is buying the property with a RM1 million discount as the property has been valued at RM321.0 million.
The exercise will be funded by a combination of bank borrowings and proceeds to be raised from a proposed placement of up to 180 million new shares in KIP REIT to raise up to RM146.70 million.
Additionally, there will be a proposed placement of up to 15 million units to major shareholder Datuk Ong Kook Liong, and/or persons connected with him.
The exercise is expected to be completed in the first quarter of 2025.
KIP REIT said the actual issue price for the placement units will be determined later and may be higher or lower than the illustrative issue price of 81.5 sen per unit.
"The proposed acquisition is in line with the investment objective and strategies of the manager to provide unitholders with regular and stable income distributions by acquiring and investing in properties that contribute to the long-term growth in KIP REIT," it noted.
KIP REIT also said that the exercise will raise the strength of its portfolio of retail assets.
It expects the proposed acquisition to contribute positively to the earnings and distributable income of KIP REIT for the future financial years.
DPulze Cyberjaya, an integrated development, incorporates a seven-storey commercial building boasting two basement levels.
Within its structure lies a supermarket, retail spaces, a cinema, a fitness centre, and an entertainment hub, complemented by two hotels and service apartments, enriching the vibrant landscape of the area.
KIP REIT's retail property portfolio comprises eight community-centric malls situated in suburban areas including Ipoh, Bangi, Senawang, Melaka, Tampoi, Masai, Kota Tinggi, and Sepang.