KIP REIT Management has entered into conditional sale and purchase agreements with Hextar Chemicals Sdn Bhd, and Teju Logistics Sdn Bhd for the sale and purchase of three industrial properties located in Pulau Indah for approximately RM78.7 million.
The assets are located in the Pulau Indah Industrial Park, Port Klang, with approximately 350,000 sq ft of lettable area that will now be added to KIP REIT’s portfolio. The properties will be leased to related companies of the Hextar group on a triple net basis for a fixed period of 15 years from the date of completion of the SPAs at a total initial annual rental of about RM5.1 million with builtin agreed rental escalations of 13% scheduled on Year 4, Year 7 and Year 11.
The Proposed Acquisitions and the Proposed Leases are deemed related party transactions and are subject to the
approval of the unitholders of KIP REIT and Hextar Chemicals. KIP adds the proposed acquisitions will be made within 2 months from the date of the release of the announcement and is expected to be completed in the second
quarter 2023.
Commenting on the acquisition, KIP Executive Director, Dato’ Ong Kook Liong states, “The proposed acquisition will be our maiden acquisition of industrial assets n line with our amended investment policy as at 29 September 2020. While we will continue to manage all our retail-focused assets, we will also continue to explore growth opportunities in the industrial and warehousing subsectors to grow our income base investment portfolio of industrial assets.”
