KIP-REIT AUM hits RM2.2bil post-Setapak acquisition

By the Editorial Team · Thursday, October 1, 2026

KIP-REIT has increased its assets under management to RM2.2 billion by acquiring Setapak Central Mall for RM435 million, adding its 20th property and boosting its net lettable area by 16%. This acquisition, expected to contribute significantly to the group’s income from Q2 FY27, enhances KIP-REIT’s tenant base and strengthens its position in the Klang Valley, supporting its goal of delivering stable returns to unitholders.

KIP real estate investment trust (KIP-REIT) has expanded its assets under management (AUM) to RM2.2 billion following the acquisition of Setapak Central Mall for RM435 million. This milestone surpasses the group’s previous target of reaching RM2 billion in AUM by 2027. The acquisition, completed recently, marks the addition of the 20th property to KIP-REIT’s portfolio and strengthens its presence in the strategic Klang Valley urban area.

Setapak Central has been rebranded as KIPMall Setapak. The acquisition increased KIP-REIT’s total net lettable area by approximately 16%, bringing it to 3.8 million square feet. The mall recorded a net property income (NPI) of RM31.3 million for the financial year ended 2025, accounting for 24.1% of KIP-REIT’s projected NPI for FY26. Based on the purchase price, this translates to a yield of about 7.2%.

KIP-REIT chief executive officer Valerie Ong highlighted the synergies expected from incorporating KIPMall Setapak, particularly due to the enlarged tenant base. Including this asset, KIP-REIT’s tenant count is anticipated to increase from around 1,300 to approximately 1,500. This expansion offers opportunities for cross-selling and upselling across the portfolio. Ong also pointed to planned changes in the mall’s tenant mix, with additions such as Jaya Grocer, Oriental Kopi, and Panda Eyes expected to enhance the retail offering.

The group’s gearing stands at roughly 41% following the acquisition. Despite this, Ong expressed confidence in the mall’s potential and the overall portfolio’s resilience, describing it as defensive by nature. She noted the accessibility of price points and strong community support as factors bolstering the performance of their community-centric neighbourhood malls. Ong further observed that consumer behavior has shifted since the Covid-19 pandemic, with a growing preference for community malls that provide comprehensive shopping experiences under one roof.

KIP-REIT said income from KIPMall Setapak will be accounted for from the second quarter of FY27. Ong emphasized the group’s objective to maintain distribution per unit throughout the financial year, underlining a focus on delivering stable and sustainable returns to unitholders. Most of KIP-REIT’s malls are located in mature townships, which continues to support consistent consumer spending patterns.

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