KIP REIT acquires 1.15-acre retail asset in Gerik for RM14.8m

• The new asset features a single-storey hypermarket, basement car park and office space. It has a net lettable area (NLA) of 60,895 sq ft and is currently leased to hypermarket chain TF Value-Mart Sdn Bhd.

KUALA LUMPUR (Nov 15): KIP Real Estate Investment Trust (KL:KIPREIT) has acquired a 1.15-acre, or 4,663 sq m, property in Gerik, Perak for RM14.8 million.

According to a press release on Tuesday (Nov 14), the new asset features a single-storey hypermarket, basement car park and office space. It has a net lettable area (NLA) of 60,895 sq ft and is currently leased to hypermarket chain TF Value-Mart Sdn Bhd. The property promises strong rental growth with an initial annual yield of 7.5%. Also, the REIT has secured a long-term triple net master lease with TF Value-Mart, along with rental increments every three years for sustainable growth.

KIP REIT chief executive officer Valerie Ong Pui Shan said, “We are thrilled to complete this acquisition, which strengthens our presence in Perak and aligns with our strategy to acquire assets that offer high yields and solid growth potential. TF Value-Mart’s established brand and loyal customer base make this property a valuable addition to our portfolio, enhancing our revenue stream with stable, attractive returns.

“Our focus on community-centric retail and industrial properties positions us uniquely in the market. With our Gerik acquisition now completed, we look forward to identifying further opportunities that align with our ESG values, offering unitholders not only financial stability but also investments that contribute positively to society and the environment.”

This acquisition expands KIP REIT’s portfolio to 12 properties that include seven KIPMalls across Malaysia, AEON Mall Kinta City in Perak and three industrial properties in Pulau Indah, Klang. All in, the REIT’s total net lettable area comes to about 2.15 million sq ft.

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