Friday, January 6, 2017

New Reit going to list on Bursa - KIP Reit

REIT in Malaysia stock market had been quiet for quite some time. In the beginning of 2017, seem we are going to welcome another new REIT on board, KIP REIT. Currently, this REIT is open for IPO application, the closing date is 16 Jan 2017 and tentative listing date is 6 Feb 2017.

I am a fan of REIT investment for quite some time, you can view one of my old article here: How to Earn Money in REIT. One can achieved investment return of 8% to 10% per year by just investing in REIT and receive the dividend. When the market pull back, if you know how to take advantage of price weakness, the return can easily above 10%. Therefore, KIP Reit is one of the reit one should not miss. With the IPO price of $1.00, one can expect something slightly more than 6 cents dividend per annum, this translate to about more than 6% in return.

For details of this IPO, just refer to below link:
http://www.thestar.com.my/business/business-news/2016/12/30/kip-reit-to-raise-at-least-rm234m-from-ipo/

Initially, KIP Reit will have 5 Kip Marts in their portfolio, namely, Tampoi, Kota Tinggi, Masai, Senawang and Malacca. The logo looks like this:

At first, I thought it's a small apple on top, but when I enlarge the image, it's a Tomato... this logo really suit their business model as they concentrate in wet market and conventional shopping center, mainly for lower and middle income group. With this, they call it as "hybrid community-centric retail centres" Reit.

The last IPO listed on Bursa was ALS Reit on Sep 2015, the IPO price is also $1.00 and almost have the similar dividend yield of around 6%. On first day of listing, ALS Reit hit the highest price of $1.06, then it pull back to $0.91 for the next few weeks. Currently, it stand at around $1.05. Investors who bought at IPO price of $1 will have return of about 10%, and those who invest when the stock pull back around $0.93 and below will see their return of around 15% including dividend.

This is the purpose I write this post today, if the history of ALS going to give any indicator, then investor can come out a plan for KIP Reit and take advantage of it. I wish you all Good Luck!






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