Malaysia’s KIP Group will establish three new malls within the coming three years, according to CEO Valerie Ong.
The new locations in Raub, Kuantan and Sungai Petani will involve RM150 million (US$36.7 million) in gross development costs and cater to middle-mass-market demand. They are being located in growing markets where consumers still prefer physical buying over online purchases.
“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”, Ong said at the launch of the firm’s ninth shopping mall at Desa Coalfield Sungai Buloh.
KIP Griup’s portfolio includes a shopping mall in Bangi and five KIP Marts in Tampoi, Kota Tinggi, Masai, Senawang and Malacca. It has also acquired Aeon Mall Kinta City, Ipoh in a RM208 million ($50.9 million) deal.
According to Ong, Malaysia’s retail sector is expected to grow by 4.5 per cent to RM109 billion this year. She added that the Desa Coalfield mall has already achieved an 80 per cent occupancy rate in advance of its scheduled opening later this year.