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KIP Group to open four new malls over the next three years

SUNGAI BULOH (March 11): Property developer KIP Group will add four new shopping malls to its portfolio, bringing the total number to 12 over the next three years.

The Star reports that Group CEO Valerie Ong said this included six properties that had already been injected into its listed entity, KIP Real Estate Investment Trust (REIT), and four new shopping malls in the pipeline.

At KIPMALL Desa Coalfields’ groundbreaking ceremony,, Ong is reported as saying that the other malls in the pipeline would be located in Kuantan, Sungai Petani and Raub.

“At this point, we are concentrating more on the property development side, as opposed to the hospitality business,” she said.

She explained that the group currently had two core businesses – the development arm and retail, both of which contributed equally to the group’s revenue.

“For the retail sector, we are more focused on investment property,” she said.

Speaking about the future, she said: “KIP REIT has its criteria to acquire the malls, such as occupancy and price.

“Once we have achieved the criteria, we will offer it to KIP REIT.”

KIPMALL, is set to open by the end of the year, with a gross development cost of RM50mil.

Occupancy is targeted at 80%. Tenants that have already been secured include Econsave, MR DIY, KFC and Watsons.

Rental is to be RM3 to RM4 per sq ft up to RM20 per sq ft depending the on size of the outlet.

KIPMALL Desa Coalfields is a two-and-a-half-storey shopping centre located in Sungai Buloh, sited on a 7.42 acre freehold land within the Desa Coalfields mixed residential and commercial township. The completed building will have a gross floor area of 244,155 sq ft with a net lettable area of 141,869 sq ft.

Speaking on challenges, Ong spoke of adapting.

“We, as shopping mall operators, will take proactive leasing strategies, to continuously review and enhance our tenant mix to adapt to the changing market trends and the evolution of customers’ needs.

“To stay relevant, the ability to adapt will be the key to success,” she said.

 

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