KIP REIT to list in Malaysia with portfolio of five retail properties
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KIP REIT is set to list in Malaysia on 6 February 2017, with an initial portfolio of five retail properties across the peninsular.
Documents lodged with the Securities Commission of Malaysia on 30 December indicate an initial public offering of 234.15 million units, of which 13.5 million units are open to retail investors.
Of these, 10.2 million units are reserved for the Malaysian Public, with 50% of this tranche further demarcated for its Bumiputera nationals.
The rest of the 220.65 million units will be offered to institutional and other qualified investors, said the REIT.
KIP REIT is sponsored by Malaysian property developer Kepong Industrial Park (KIP) Group.
The constituents of its initial portfolio are namely the KIP Mart outlets in Tampoi, Kota Tinggi, Masai, Melaka, Bangi, and Senawang.
The properties are valued at MYR580 million (USD130 million), and feature an aggregrate occupancy rate of about 85.3% for the four-month period that ended in October 2016.
In addition, KIP REIT will also have a right of first refusal (ROFR) on the sponsor’s malls at Kota Warisan, Sendayan, Sungai Buloh, Kuantan, and Sungai Petani.
At the indicative price of MYR1.00 per unit, KIP REIT seeks to raise at least MYR234 (USD52 million) million from the offering.
Final listing price for units of KIP REIT has been set for 17 January.
Questions & Answers
Q.What is the total value of the properties in KIP REIT's initial portfolio?
What is the total value of the properties in KIP REIT's initial portfolio?
The properties making up KIP REIT's initial portfolio are valued at MYR580 million (USD130 million). This figure accounts for the five retail properties across the peninsular.
Q.How many units are being offered to retail investors in the initial public offering?
How many units are being offered to retail investors in the initial public offering?
Out of the 234.15 million units in the initial public offering, 13.5 million units are open to retail investors. A portion of these are specifically reserved for the Malaysian Public.
Q.Which specific KIP Mart outlets form part of the initial portfolio?
Which specific KIP Mart outlets form part of the initial portfolio?
The initial portfolio comprises KIP Mart outlets located in Tampoi, Kota Tinggi, Masai, Melaka, Bangi, and Senawang. These are all across the Malaysian peninsular.
Q.What is the target amount KIP REIT aims to raise from this offering?
What is the target amount KIP REIT aims to raise from this offering?
KIP REIT aims to raise at least MYR234 million (USD52 million) from this offering. This is based on an indicative price of MYR1.00 per unit for the total units being offered.
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