KIP REIT Management Sdn Bhd has inked a deal to buy Aeon Mall Kinta City Shopping Centre in Perak for RM208mil.
KUALA LUMPUR: KIP Real Estate Investment Trust
(REIT) is buying the four-storey Aeon Mall Kinta City shopping centre in Ipoh for RM208mil cash consideration.
KIP REIT announced on Wednesday the vendor of the property, Kinta City Sdn Bhd had accepted its trustee Pacific Trustees Bhd's offer to purchase the building.
The rental income per month for the 21 year old building is RM1.359mil or RM16.31mil per annum.
CH Williams Talhar & Wong Sdn Bhd has assessed the market value at RM220mil. The net book value of the property as at Dec 31, 2017 was RM253mil.
KIP REIT said the property was in a strategic location and the immediate surrounding was mixed coimmercial and residential development.
It also said the property has lowleasing risk as it was leased out for 10 years from 2015 to 2025.
“The vendor has recently enhance the property, incurring expenditure of over RM32mil in the pasty two years. The purchaser expects that the expenditure for maintaining or enhancing the property, after the proposed acquisition is completed, will be relatively low, given the recent enhancements,” it said.
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