KUALA LUMPUR (Sept 30): KIP Real Estate Investment Trust (KL:KIPREIT) acquired its 20th property with the completion of its RM435 million acquisition of Setapak Central Mall, which delivers an attractive yield of 7.2%. 

The new addition lifted its total net lettable area by approximately 16% to 3.8 million sq ft and boosted the REIT’s total assets under management to RM2.2 billion, surpassing its RM2 billion target for 2027, according to a press statement issued on Wednesday.

Following the completion of the acquisition, Setapak Central Mall has been officially renamed KIPMall Setapak.

The three-storey shopping mall, together with its basement car park, has a net lettable area of 514,777 sq ft and recorded a net property income of RM31.3 million for the financial year ended 2025, equivalent to 24.1% of KIP REIT's FY2026 net property income.

Income from KIPMall Setapak will be recognised from the second quarter for its 2027 financial year onwards. Its tenant mix will be further strengthened with brands such as Jaya Grocer, Oriental Kopi, Panda Eyes, HLA and Bambu Lab.

KIP REIT chief executive officer Valerie Ong said: "The rebranding of Setapak Central Mall to KIPMall Setapak marks the beginning of a new chapter for the property under the KIPMall brand. We look forward to building on the mall's established presence and strong occupancy, while exploring opportunities to further enhance its positioning and deliver sustainable value to our unitholders".

The acquisition was funded through bank borrowings via AAA-rated medium-term notes and proceeds from a private placement, which contributed RM161.6 million or 37.1% of the total acquisition funding.