KIP REIT REAL ESTATE INVESTMENT TRUST (1169638-M)

FUND INFORMATION

SUMMARY OF KIP REIT
Name of REIT KIP REIT
REIT type Income stability and growth
Deed 2 November 2016
The Manager KIP REIT Management Sdn Bhd
The Trustee Pacific Trustees Berhad
Approved size of KIP REIT 505,300,000 Units
Authorised Investments Real Estate, SPVs, Real-Estate Related Assets, Non-Real Estate-Related Assets, cash, deposits, money market instruments and any other investments not specified above but specified as a permissible investment in the REIT Guidelines or as otherwise permitted by the SC.
Authorised Investments limits

The investments of KIP REIT are subject to the following investment limits imposed by the REIT Guidelines:

  1. at least 50.0% of KIP REIT’s Total Asset Value must be invested in Real Estate and/or SPVs at all times; and
  2. not more than 25.0% of KIP REIT’s Total Asset Value may be invested in Non-Real Estate- Related Assets and/or cash, deposits and money market instruments,

provided that investments in both Real Estate-Related Assets and Non-Real Estate-Related Assets are limited as follows:

  1. the value of KIP REIT’s investments in securities issued by any single issuer must not exceed 5.0% of KIP REIT’s Total Asset Value;
  2. the value of KIP REIT’s investments in securities issued by any group of companies must not exceed 10.0% of KIP REIT’s Total Asset Value; and
  3. KIP REIT’s investments in any class of securities must not exceed 10.0% of the securities issued by any single issuer; or
  4. such other limits and investments as may be permitted by the SC or the REIT Guidelines.
Distribution Policy

The Deed provides that the Manager, shall with the approval of the Trustee, for each distribution period, distribute all (or such other percentage as may be determined by the Manager at its absolute discretion) of KIP REIT’s Distributable Income. It is the intention of the Manager to distribute up to 100.0% of KIP REIT’s Distributable Income for the period from its date of establishment to 30 June 2017 and thereafter at least 90.0% of KIP REIT’s Distributable Income on a half-yearly basis (or such other intervals as the Manager may determine at its absolute discretion).

The actual proportion of Distributable Income to be distributed beyond 30 June 2017, which shall be at the absolute discretion of the Manager, may be greater than 90.0% of KIP REIT’s Distributable Income to the extent that the Manager believes it to be appropriate, having regards to KIP REIT’s funding requirements, other capital management considerations and the availability of funds. Distributions, when made, will be in Ringgit Malaysia.

The first distribution, which will be in respect ofthe period from KIP REIT’s date of establishment to 30 June 2017, will be paid by the Manager within two months from the end of the said period. Please refer to Section 1.6 “Distribution Policy” of this Prospectus for further details.

Borrowing Limitations and Gearing Policy Up to 50.0% of the Total Asset Value of KIP REIT at the time the borrowing is incurred (or such other limit permitted by the REIT Guidelines from time to time). However, KIP REIT’s total borrowings may exceed this limit with the prior approval of the Unitholders.
Performance Benchmark The following performance indicators can be considered in reviewing the performance of KIP REIT: (i) distribution yield, (ii) NAV, (iii) total return (calculated as the change in market price of the Units over a period of time plus any distributions received during the relevant period) and (iv) MER. The performance indicators will be used to benchmark KIP REIT against its peers as well as against its own historical performance where applicable.
Revaluation Policy Independent professional valuation will be obtained at least once every three years in accordance with the REIT Guidelines or such other shorter interval as the Manager deems necessary and these valuations will be conducted on the bases and methods which are in accordance with the Asset Valuation Guidelines.
Redemption Policy Unitholders have no right to request the Manager to repurchase their Units.
Minimum Initial Investment Minimum of 100 Units
Minimum Additional Investment Multiples of 100 Units
Investor Profile KIP REIT may appeal to an investor with long-term investment objectives who seeks regular income distribution and long-term capital appreciation, and who understands the risks related to the real estate industry and REITs.
Form The Units will be issued in registered form and KIP REIT shall be constituted by the Deed.
Board Lot 100 Units per board lot.
Quotation Main Market.
Governing Law The Deed is governed by Malaysian law.
Avenue for Advice Available to Prospective Investors

The Manager strives to provide investors with quality information services to assist investors to make well informed investment decisions and keep abreast of developments relating to KIP REIT.

Enquiries can be made through:

  1. by telephone enquiry to business office at telephone number +603 6252 0888 or facsimile number +603 6258 6619 during normal business hours;
  2. in writing to registered office at Unit B-6, Blok B, Tingkat 6, Menara KIP, No. 1, Jalan Seri Utara 1, Sri Utara Off Jalan Ipoh, 68100 Kuala Lumpur, Malaysia; or
  3. KiP REIT’s email at kipreit@kip.com.my or website at www.kipreit.com.my