PETALING JAYA: Pacific Trustees Bhd, the trustee of KIP Real Estate Investment Trust (KIP REIT), has completed the acquisition of the remaining lease interest in an industrial property located within Johor Port Authority Industrial Area, Pasir Gudang, Johor for a cash consideration of RM23.3 million.
The property was appraised at RM24.1 million as at July 2, 2024.
The property, tenanted by PK Fertilizers Sdn Bhd, comprises a single-storey detached warehouse with an annexed double-storey office, a guard house and a pump house, situated on industrial leasehold land with a net lettable area of 184,120 square feet.
This acquisition represents another milestone in KIP REIT’s strategy to enhance income stability and expand its presence in the industrial sector, which continues to demonstrate strong long-term growth prospects.
The tenancy term is for a fixed period of three years, with automatic renewals for four consecutive terms of three years each, providing predictable and recurring cash flow visibility.
KIP REIT CEO Valerie Ong commented, “This acquisition underscores our commitment to strengthen KIP REIT’s industrial portfolio, which offers long-term stability and resilient rental income. The property’s strong tenant profile and built-in rental escalation ensure sustainable returns while contributing to portfolio diversification.”
She added, “This acquisition also marks meaningful progress toward our RM2 billion assets under management target, underscoring our disciplined approach in expanding both income and asset base. Each addition enhances the breadth and resilience of our portfolio, positioning KIP REIT for sustainable long-term growth.”
Following this acquisition, KIP REIT’s portfolio now comprises 18 income-generating properties across Peninsular Malaysia and Sarawak. The group remains focused on strengthening its recurring income base through strategic acquisitions, asset enhancement initiatives and active portfolio management.
