KIP Real Estate Investment Trust (KLSE:KIPREIT) entered into an agreement to acquire KIPMall Kota Warisan from Cahaya Serijaya Sdn. Bhd. for MYR 80 million on June 16, 2023.

The Purchase Price will be funded by a combination of bank borrowings (MYR 47.933 million), balance unutilized proceeds raised from the previous private placement exercise under the general mandate (MYR 22.237 million) and proceeds to be raised from the Proposed Private Placement (MYR 9.83 million). As of December 31, 2022, KIPMall Kota Warisan reported net income of MYR 6 million and total common equity of MYR 75 million. As of October 4, 2023, the unitholders of KIP Real Estate approved the transaction.

The transaction is expected to complete by 1st quarter of 2024. Asia Equity Research Sdn Bhd and M&A Securities acted as financial advisors to non-interested directors of manager and the non-interested unitholders of KIP REIT.