KUALA LUMPUR, 30 September 2025 – KIP Real Estate Investment Trust (“KIP REIT” or “the Group”), via its trustee Pacific Trustees Berhad, has officially completed the acquisition of an industrial property in Bintulu, Sarawak, for a total consideration of RM28.7 million. This milestone marks KIP REIT’s first foray into East Malaysia, a strategic expansion that reinforces its ambition to build a geographically diversified and income-resilient portfolio.
The property, a 15-year-old double-storey office integrated with a six-storey processing plant, has a net lettable area of 207,315 square feet and was valued at RM28.8 million as of 28 June 2024. The acquisition was fully funded through cash consideration, reflecting the Group’s prudent capital management and strong balance sheet.
Currently, the asset is fully tenanted by Hextar Solutions Sdn Bhd, under a three-year fixed-term lease with automatic renewals for four consecutive three-year terms. As a manufacturer and marketer of a wide range of fertilisers, Hextar Solutions adds sectoral diversity to KIP REIT’s industrial tenant base while offering long-term rental stability, enhancing overall income visibility for the Group.
Expanding Reach Across Malaysia
With this latest acquisition, KIP REIT’s portfolio now spans 17 properties across Peninsular Malaysia, Sabah, and Sarawak. Together with assets pending completion, its combined net lettable area will exceed 3.5 million square feet, with a total portfolio valuation of approximately RM1.7 billion. The Group has been actively pursuing acquisitions since the start of FY2026, successfully adding KIPMall Desa Coalfields, KIP Kuantan, and the Bintulu industrial property, moving steadily toward its RM2.0 billion assets under management (AUM) target.
CEO’s Commentary
KIP REIT chief executive officer Valerie Ong said the entry into Sarawak represents more than just geographic expansion.
“We are excited to expand into Sarawak, which represents not just a geographic milestone for us but also an opportunity to deepen our industrial asset base. Having a strong and reputable tenant provides both stability and a foundation to grow further in the region,” she said.
Ong added that the pace of acquisitions in FY2026 reflects the Group’s disciplined execution of its growth strategy:
“FY2026 has started as a busy but rewarding year, with three acquisitions completed in quick succession. As we move towards our RM2.0 billion AUM target, our focus remains on building a well-diversified portfolio that balances resilience with long-term growth. Above all, we want our unitholders to see consistent, sustainable value creation from every step we take.”
Strategic Implications
The Bintulu property not only strengthens KIP REIT’s industrial presence but also positions the Group to capitalise on East Malaysia’s economic growth potential. Bintulu, a hub for energy, manufacturing, and logistics, is emerging as a strategic location for long-term industrial expansion. By broadening its tenant mix and geographical reach, KIP REIT enhances its resilience against sector-specific risks while continuing to anchor its portfolio with retail assets.
The acquisition reflects broader trends among Malaysian REITs, where diversification across industrial and logistics properties is increasingly seen as a key lever for sustainable distributions and long-term unitholder value.
