KIP Group to open 3 malls in next 3 years
SUNGAI BULOH: KIP Group of Companies is planning to open three new shopping malls over the next three years involving RM150 million in gross development cost to cater to the demand of the middle mass market, says group chief executive officer Valerie Ong.
She said the three new malls will be located in Raub, Kuantan and Sungai Petani.
“This means we will have a total of 12 shopping malls in our portfolio, including the six properties that had been injected to our listed entity, KIP REIT,” she told reporters at the launch of its ninth shopping mall — KIP Mall Desa Coalfield --at Desa Coalfield Sungai Buloh.
KIP REIT’s portfolio now comprises one KIP shopping mall in Bangi and five KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Melaka.
It had also acquired Aeon Mall Kinta City, Ipoh for RM208 million.
Ong said Malaysia’s retail industry is forecast to grow by 4.5 per cent to RM109 billion this
This means we will have a total of 12 shopping malls in our portfolio, including the six properties that had been injected to our listed entity, KIP REIT. Valerie Ong, KIP Group chief executive officer
year.
She said although consumers now prefer to buy goods online, the company would not be impacted as the malls are all placed in upcoming or growing markets where consumers still prefer physical buying.
“In small cities, most of the people still prefer to go out to buy goods and on weekends they will go out to eat with family.
“Not everything can be purchased or enjoyed via online.
“Therefore, having the right mix of tenants is important for us so that we can provide a onestop solution for our shoppers,” she said, adding the right quality tenants will be selected based on the mall’s strategic location and the changing market trends.
She said KIP Mall Desa Coalfield, which will open in the fourth quarter of this year, has already secured an 80 per cent occupancy rate with tenants that include Econsave, Mr DIY, Watson, Metro Optical and KFC.
Ong said the company would take proactive leasing strategies to continuously review and enhance its tenant mix to adapt to the changing market trends and the evolution of customers’ needs.
The collaboration and strong bonds with the tenants are a winwin situation for both parties, and the group looks forward to establishing more partnerships in the near future, she added.
Founded in 1993, KIP Group of Companies is a developer of value-added products in both property development and retail management. — Bernama