KIP REIT cuts energy costs by 15% and lowers carbon footprint

KUALA LUMPUR: Pacific Trustees Bhd, the trustee of KIP Real Estate Investment Trust (KIP REIT), has entered into a 20-year partnership with KJ Technical Services Sdn Bhd (KJTS SB), a wholly-owned subsidiary of KJTS Group Bhd to implement sustainable cooling solutions.

In a statement, KIP REIT said the initiative ensures a 15% cut in chiller plant energy costs after recovering capital expenses while reducing carbon emissions and improving efficiency.

The savings are built into the agreement’s fee structure, reflecting KIP REIT's careful management of rising costs.

KJTS SB will fund and oversee extensive retrofits to upgrade cooling systems, enhancing energy efficiency and reducing environmental impact.

The RM25.3mil upgrade is set to begin on April 1 and is expected to be completed by Dec 31, 2025.

During the operation and maintenance period from Jan 1, 2026 till Dec 31, 2045, KJTS SB will supply chilled water and manage the systems using advanced technology and 24/7 live monitoring to ensure optimal performance and sustainability.

"This partnership with KJTS Group marks a significant step forward in our commitment to sustainability. The implementation of the energy-efficient cooling systems reinforces our goal to lower our carbon footprint while maximising cost efficiency,” KIP REIT chief executive officer Valerie Ong said.