KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) expects a net property income yield (NPI) of 6.5 per cent from its purchase of 163 Retail Park.
Yesterday, its trustee RHB Trustees Bhd signed a conditional agreement to purchase 163 Retail Park in Mont Kiara from D'Kiara Place Sdn Bhd, a subsidiary of YNH Property Bhd, for RM215 million.
163 Retail Park boasts a gross floor area of 76,146 sq. m., including a net lettable area of around 23,740 sq. m. and accommodates 1,085 car park bays.
Occupied at a rate of 94 per cent, the property features over 100 tenants and brands, catering to a diverse and affluent market in the Mont' Kiara, Hartamas, and Segambut vicinity.
Sunway REIT said the property, constituting a seven-story retail mall, serves as the focal point of the mixed integrated development known as Kiara 163.
"Surrounded by a substantial captive population comprising both locals and expatriates and coupled with our strong branding and track record in mall management, we believe the mall can be further enhanced as a premium lifestyle hub and NPI increased through tenant mix optimisation and asset enhancement initiatives."While competition in the retail industry in Klang Valley is rising, we believe 163 Retail Park is fulfilling the everyday requirements of a niche market whose income will be resilient and less impacted by new mall openings," Sunway REIT Management Sdn Bhd chief executive officer Clement Chen said.
Sunway REIT will fund the purchase through existing debt facilities.
"The completion of the acquisition is targeted for the second quarter of 2024 (2Q24), subject to the fulfilment of conditions specified in the sale and purchase agreement.
Following the completion of the acquisition, Sunway REIT's assets under management (AUM) will rise to RM9.1 billion, solidifying its status as the second-largest publicly listed Real Estate Investment Trust (REIT) in Malaysia based on AUM.