AEON says Aeon Mall Kinta City will be expanded, upgraded

• The group has inked a memorandum of understanding (MOU) with the building owner KIP Real Estate Investment Trust (KL:KIPREIT) for the refurbishment that is expected to boost the property's value, rental income and customer experience

(March 5): AEON Co (M) Bhd (KL:AEON) announced on Wednesday that its Aeon Mall Kinta City in Perak will be expanded and upgraded in a bid to enhance its retail offerings.

The group has inked a memorandum of understanding (MOU) with the building owner KIP Real Estate Investment Trust (KL:KIPREIT) for the refurbishment that is expected to boost the property's value, rental income and customer experience, it said in a statement.

The mall, which opened in 1997 as Aeon’s first outlet in Perak, will see the introduction of new retail lots, improved common areas, and enhanced facilities. The completion of the mall expansion is targeted within three years from the signing of the agreement.

In addition to the expansion, AEON has signed a renewal term for the existing building and will also master lease the new space. As part of the MOU, AEON said it is set to enter into an even longer lease with KIP REIT but did not elaborate.

KIP REIT said the planned expansion reflects its commitment to asset enhancement initiatives (AEIs), which play a vital role in increasing property value, rental income, and overall portfolio performance. “By enhancing property value and attracting quality tenants, we are positioning our portfolio for long-term success,” said KIP REIT CEO Valerie Ong in the same statement.

“The extended lease term reflects the strength of our partnership and reinforces our commitment to driving long-term value for our unitholders,” Ong added.

AEON managing director Naoya Okada said the mall's expansion is the group’s commitment to deliver an upgraded shopping destination that meets the demands of modern consumers and to remain the preferred shopping destination. AEON has 28 malls in Malaysia.

AEON’s share price settled two sen or 1.5% higher at RM1.38, bringing the group's market capitalisation to RM1.94 billion.

KIP REIT closed unchanged at 87 sen, giving the REIT a market capitalisation of RM695 million.

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