Lestari Cooling Energy Sdn. Bhd. (“Lestari” or “the Company”), a joint venture platform between Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets, Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Malaysia’s public sector pension fund, and KJ Technical Services Sdn. Bhd. (“KJTS SB”), a wholly-owned subsidiary of KJTS Group Berhad (“KJTS”) (KLSE: KJTS), today announced the activation of its operating platform with its first investment into operating assets owned by KIP Real Estate Investment Trust (“KIP REIT”). This initial investment comprises a 20-year cooling services agreement covering eight KIPMall sites, with total capital deployment of approximately RM23 million.
Under a novation arrangement involving Pacific Trustees Berhad (acting solely in its capacity as trustee for KIP REIT), KJTS SB and Lestari, the latter will assume the role of asset owner and capital investor for the project. KJTS SB will continue to provide operation and maintenance (O&M) services as well as chilled water supply across the portfolio, while KJ Engineering Sdn. Bhd. (“KJE”), a wholly-owned subsidiary of KJTS, is responsible for engineering, procurement, construction and commissioning (EPCC) works.
The cooling services agreement, originally entered into between KJTS SB and the trustee of KIP REIT in March 2025 and subsequently supplemented in October 2025, covers retrofit works, O&M services and chilled water supply across eight KIPMall properties for a 20-year term ending in July 2046. Seven of the eight sites are already operational, with services and chilled water supply commencing between January and May 2026 at KIPMall Bangi, KIPMall Tampoi, KIPMall Masai, KIPMall Kota Tinggi, KIPMall Kota Warisan, KIPMall Senawang and KIPMall Melaka. KIPMall Desa Coalfields is expected to commence operations between May and July 2026.
This investment directly supports Malaysia’s National Energy Transition Roadmap (NETR) by enabling large-scale energy efficiency improvements across the country’s commercial real estate sector. It also marks the formal activation of Lestari Cooling Energy as an operating platform.
As previously announced, Lestari is expected to be capitalised at up to MYR 1.5 billion (approximately USD 380 million) through aggregate equity commitments and debt financing, with an addressable project pipeline exceeding MYR 2 billion (approximately USD 500 million) in annual deployment opportunities. KWAP’s participation in Lestari is aligned with the Ministry of Finance’s GEAR-uP programme, which aims to catalyse growth in high-value and high-impact sectors while enabling Malaysian companies to scale. The investment is also channelled through KWAP’s Dana Iklim+, which supports climate-related solutions and investments aligned with Malaysia’s transition towards a low-carbon economy. The platform therefore represents a key milestone in mobilising institutional capital towards energy transition and sustainable infrastructure development.
According to Azura Binti Azman, Director at Lestari Cooling Energy, this marks an important inflection point for the platform as it transitions into an operational phase. With an initial base of revenue-generating assets and additional capacity coming online, she noted that Lestari now has meaningful scale and visibility. The company’s focus will be on disciplined investment in high-quality cooling infrastructure, building a portfolio that generates stable and recurring cash flows while supporting energy efficiency and broader sustainability objectives.
Valerie Ong, Chief Executive Officer of KIP REIT, said the appointment of Lestari Cooling Energy as the new asset owner under the long-term cooling services arrangement strengthens the operational resilience of KIP REIT’s retail assets. She added that the partnership ensures continued efficiency, reliability and sustainability across its malls, while maintaining consistent service quality for tenants and shoppers.
Stonepeak Managing Director Zach Ennis stated that the activation of Lestari through its first asset injection represents a key milestone in the platform’s development and reflects Stonepeak’s disciplined approach to building infrastructure platforms across Asia. With seven operational sites already in service, he described Lestari as an income-producing asset platform and expressed support for its continued expansion alongside KWAP and KJTS.
Group Managing Director of KJTS Group Berhad, KC Lee, said that across the eight KIPMall sites, a total of 3,910RT of cooling capacity is being installed, with the retrofitted systems expected to reduce carbon emissions by approximately 3,408 tonnes of CO₂ per year, or around 68,157 tonnes of CO₂ over the 20-year contract period. He added that the novation structure enables KJTS to focus on its core strengths in engineering, construction and operation of energy-efficient cooling systems, while Lestari assumes the capital ownership role. This structure, he noted, allows both parties to scale more efficiently while ensuring service continuity supported by long-term institutional investors.
