KIP REIT to grow assets to RM1bil by 2019
KUALA LUMPUR: KIP Real Estate Investment Trust (REIT) plans to grow its total asset value to RM1bil by 2019, to be driven by new acquisitions.
As of Sept 30, the property trust’s total asset value amounted to RM614.93mil.
“We are currently evaluating five potential assets,” said KIP REIT chief executive officer Chan Heng Wah.
Following the completion of the sale and purchase agreement for Aeon Mall Kinta City shopping centre in Ipoh, KIP REIT’s total asset value will grow to RM834.93mil, Chan said after the signing ceremony of two memoranda of understanding (MoUs) between KIP Group and QSR Brands (M) Holdings Bhd to provide a KFC drive-through restaurant service at KIP Group’s retail outlets, which is expected to boost occupancy rates and earnings in the future.
Under the MoU terms, QSR Brands will set up a KFC drivethrough restaurant at KIP Group’s shopping mall, KIP Mall Desa Coalfields in Sungai Buloh, while the second one will be located in KIP Mart Lavender in Senawang, a retail centre owned by KIP REIT.
The 4,088-square-feet KFC drivethrough restaurant at Desa Coalfields is an extension to the 213,000-sq-ft KIP Mall Desa Coalfields.
This will increase the mall’s occupancy rate and boost its footfall to about 1,500 visitors per day, when it opens its doors to the pub- lic in the fourth quarter of 2019.
On the other hand, the KFC outlet to be built at KIP Mart Lavender in Senawang is expected to grow the retail market’s occupancy rate by 4% to about 85%, with the extension of the new 4,800-sq-ft KFC drive-through restaurant.
This partnership model is part of QSR Brands’ asset-light strategy, where the company works with property developers to jointly set up fast-food restaurants in integrated developments.
To date, QSR Brands has signed four such partnership agreements and is currently in negotiations with seven property developers.
QSR Brands managing director Datuk Seri Mohamed Azahari Mohamed Kamil said KFC strove to work in partnerships with businesses from various industries, as part of its continuous effort to improve its service accessibility and offerings.
“We believe we will be able to provide added-value to the lives of the surrounding communities with the convenience of a KFC drive-through service, and at the same time be the growth catalyst to the retail centre with the presence of our iconic brand,” he said.
QSR Brands targets to grow its KFC outlets by 67 over the next three years, from the current 707 outlets.
This does not include the potential 50 KFC outlets to be set up in partnership with Petronas.
As for Pizza Hut, QSR Brands aims to open 60 new stores over the next three years, after a quiet two years of restructuring.