PETALING JAYA: AEON Co (M) Bhd has entered into an agreement with Pacific Trustees Bhd, the trustee of KIP Real Estate Investment Trust (KIP REIT), for the expansion of AEON Mall Kinta City in Perak.
Under the agreement to build, AEON, as the lessee, will continue its long-term tenancy at AEON Mall Kinta City and has committed to leasing both the existing mall and the expanded area under an extended lease arrangement.
The agreement also provides for a 25-year extension of the lease tenure, from Sept 29, 2030, to Sept 28, 2055, reinforcing long-term income visibility for KIP REIT.
Commenting on the collaboration, AEON managing director Naoya Okada said the agreement reflects the company’s long-term commitment to grow in key regional markets and the confidence in AEON Mall Kinta City’s future.
“The expansion, which will introduce additional retail space, has long been anticipated by many retailers seeking
to establish and grow their businesses here. Working closely with KIP REIT, we are investing in a development that will strengthen the mall’s foundations and keep it relevant to changing customer needs and lifestyles.
“Our focus is on building a more resilient retail destination that continues to serve the community while creating sustainable value for our business partners and stakeholders,” he said in a statement.
KIP REIT will undertake and fund the development of the expansion at its own cost, with a total development cost of up to RM160 million, as part of KIP REIT’s asset enhancement initiatives.
The expansion is targeted for completion and opening by the fourth quarter of 2027.
The expansion will increase AEON’s total leasable area from KIP REIT by 27%, from about 530,000 sw ft to about 675,000 sq ft.
As a result, the mall’s net lettable area will expand by 30%, from around 450,000 sq ft to about 580,000 sq ft.
The development will enhance both existing and expanded areas through improvements to the tenant trade mix, facilities and overall layout, aimed at strengthening shopper attraction, operational efficiency and long-term
sustainability of the asset.
KIP REIT executive director and CEO Valerie Ong said AEON Mall Kinta City holds a special place in Ipoh’s retail landscape.
“For nearly 30 years, AEON Mall Kinta City has been a cornerstone shopping destination for Ipoh. It is a place where generations of Ipohites have shopped, gathered and created lasting memories, and it continues to serve the community today.
“Strategically located and surrounded by mature, well-populated townships, the mall has remained deeply embedded in the daily lives of the Ipoh community,” she said.
“I am glad that both AEON and KIP REIT share a common vision and are aligned in upgrading the mall into its next phase of growth. This expansion is not just about adding space. It is about reimagining the retail experience to remain relevant, future-ready and meaningful for the community for decades to come.
“At its core, this is about honouring the past while building a stronger retail legacy for the next generation,” said Ong.
The agreement was signed by Okada and Pacific Trustees director Edward Cheah at a ceremony held at AEON Mall Taman Maluri, Kuala Lumpur. It was witnessed by AEON deputy managing director Tsugutoshi Seko and Ong.
