PETALING JAYA: KIP Real Estate Investment Trust
(KIP-REIT), has entered into four separate conditional sale and purchase agreements (SPAs) to acquire four strategic industrial properties for RM98.3mil cash.
The acquisitions are aligned with the trust to diversify its portfolio to include industrial and commercial properties that provide a sustainable business model through stable rental yield.The first SPA was entered into with Channel Legion Sdn Bhd to acquire a land with warehouse at Port Klang Free Zone, Pulau Indah, Selangor for RM23.7mil.
The warehouse ha a net lettable area of 193,365 sq ft. As part of the SPA, KIP REIT will enter into an initial three-year tenancy agreement with automatic renewal of four consecutive terms of three years each with Teju Logistics Sdn Bhd.
The second SPA was with Sin Chee Heng Sdn Bhd to acquire a factory in Cheras Jaya for RM22.6 mil. The factory has a net lettable area of 66,632 sq ft, KIP-REIT stated in a release.
The sell and tenant back agreement with Sin Chee Heng will be for an initial period of three years with automatic renewal of three consecutive terms of three years each.
The third SPA details the acquisition of warehouse from PK Fertilizers Sdn Bhd for RM23.3mil.
The warehouse in Pasir Gudang, Johor, has a net lettable area of 184,120 square feet. KIP REIT will then enter into a tenancy agreement with PK Fertilizers Sdn Bhd for an initial period of three years with automatic renewal of four consecutive terms of three years each.
The final SPA is for a processing plant from Teju Logistics for RM28.7mil.
