KJTS Group Guarantees 15% Energy Cost Savings and Cuts Carbon Emissions for KIP REIT
KUALA LUMPUR, 5 MARCH 2025 – KJTS Group Berhad (“KJTS” or the “Company”), a leading provider of cooling energy management solutions , has secured a 20-year service agreement with Pacific Trustee Berhad, acting solely in its capacity as the trustee and on behalf of KIP Real Estate Investment Trust (“KIP REIT”). Through its wholly-owned subsidiary, KJ Technical Services Sdn Bhd (“KJTS SB”), the Company will undertake retrofit works and subsequently provide operation and maintenance (“O&M”) services and supply chilled water to seven KIPMall locations across Malaysia.
This initiative guarantees a 15% reduction in energy costs for the chiller plants following capital expenditure recovery, while also aims to lower carbon emissions and enhance energy efficiency. The guaranteed savings are included in the fee structure of the service agreement, highlighting KJTS’s commitment to delivering cost-efficient and sustainable solutions.
KJTS SB will finance and execute the retrofit works with a capital expenditure amounting to RM25,268,026. These upgrades are designed to significantly enhance energy efficiency and reduce environmental impact. The retrofit is scheduled to commence from 1st April 2025 and expected to be completed by 31st December 2025.
Following the retrofit works, KJTS SB will provide ongoing O&M services and supply chilled water from 1st January 2026 to 31st December 2045 across the following seven KIPMall locations: KIPMall Bangi, KIPMall Kota Warisan, KIPMall Senawang, KIPMall Melaka, KIPMall Tampoi, KIPMall Masai and KIPMall Kota Tinggi
KJTS is thrilled to partner with KIP REIT on this landmark project, which underscores the Company’s commitment to providing innovative and eco-friendly solutions. This strategic partnership not only strengthens KJTS SB’s position in the market but also delivers substantial financial benefits to KIP REIT, through improved energy management and operational efficiency. By integrating cutting-edge technology and 24/7 live monitoring into its O&M services, KJTS SB ensures operational reliability, efficiency, and sustainability.
This achievement underscores KJTS's commitment to delivering a mutually beneficial proposition, solidifying our role as a key partner in supporting the growth and success of REITs. Looking ahead, we are optimistic that this success will serve as a valuable reference, enabling KJTS to further expand its presence and secure additional REIT partnerships.
The partnership is part of KJTS’s ongoing strategy to expand its footprint in the integrated energy management services sector, particularly in the areas of cooling energy management. The Group remains focused on delivering high-quality, sustainable solutions to its clients while promoting growth and profitability. With over 40 years of industry experience, the Group continues to drive innovation and supporting clients in achieving their environmental and operational objectives.
Check out the announcement here.
