Lestari Cooling Energy Sdn. Bhd. (“Lestari” or “the Company”), the 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”), comprising a 20-year cooling services agreement covering eight KIPMall sites. The total capital deployment across the eight KIPMall sites amounts to approximately RM23 million.
Through a novation arrangement between Pacific Trustees Berhad (acting solely in its capacity as trustee for KIP REIT), KJTS SB and Lestari, Lestari is assuming the asset ownership and capital investment role for the project. KJTS SB will continue to provide operation and maintenance (“O&M”) services and chilled water supply across the portfolio, while KJ Engineering Sdn. Bhd. (“KJE”), a wholly-owned subsidiary of KJTS, is undertaking the 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 supplemented in October 2025, covers retrofit works, O&M services and the supply of chilled water across eight KIPMall properties for a 20-year term running until July 2046. Seven of the eight sites are already operational, with O&M services and chilled water supply having commenced between January and May 2026 at KIPMall Bangi, KIPMall Tampoi, KIPMall Masai, KIPMall Kota Tinggi and KIPMall Kota Warisan, KIPMall Senawang and KIPMall Melaka. KIPMall Desa Coalfields is expected to commence operations between May and July 2026.
This injection directly supports Malaysia’s National Energy Transition Roadmap (NETR) by enabling energy efficiency at scale across the country’s commercial real estate sector.
The injection also marks the activation of Lestari as an operating platform. As previously announced, Lestari is expected to be capitalised at up to MYR 1.5 billion (~USD 380 million) through aggregate commitments and debt funding, targeting an actionable addressable market of over MYR 2 billion (~USD 500 million) in project deployment opportunities per year.
KWAP’s investment in Lestari aligns with the Ministry of Finance’s GEAR-up programme to catalyse growth in high-value, high-impact sectors and enable Malaysian companies to scale. The investment is also channelled through KWAP’s Dana Iklim+, which supports climate solutions and investments aligned with Malaysia’s transition towards a low-carbon economy. The platform also marks a milestone in mobilising institutional capital towards energy transition and sustainable infrastructure.
This marks an important inflection point for Lestari Cooling Energy as it takes shape as an operating platform. With an initial base of revenue-generating assets and further capacity coming onstream, the platform now has real scale and visibility. Our focus is to invest with discipline in high-quality cooling infrastructure, building a portfolio that delivers stable, recurring cash flows while advancing energy efficiency and broader sustainability outcomes. We look forward to growing alongside our partners,” said Azura Binti Azman, Director at Lestari Cooling Energy.
“We are pleased to welcome Lestari Cooling Energy as the new asset owner under our long-term cooling services arrangement. For KIP REIT, having the right long-term partner is critical in supporting the operational efficiency, reliability, and long-term sustainability of our malls. This arrangement further strengthens the infrastructure supporting our retail assets while ensuring continuity of service for our tenants and shoppers. Our shoppers and tenants will continue to enjoy the same quality experience across our KIPMall sites,” said Valerie Ong, Chief Executive Officer of KIP REIT.
“The activation of Lestari Cooling Energy with this first asset injection is an important milestone for the platform and reflects Stonepeak’s disciplined approach to platform and asset creation across Asia. With seven operating sites in service, Lestari is an income-producing asset platform, and we look forward to supporting its continued growth alongside KWAP and KJTS,” said Zach Ennis, Managing Director at Stonepeak.
“Across the eight KIPMall sites, KJTS is installing a total of 3,910RT of cooling capacity, with the retrofitted systems estimated to avoid approximately 3,408 tonnes of tCO2 per annum, or around 68,157 tCO2 over the 20-year contract term,” said KC Lee, Group Managing Director of KJTS Group Berhad. “This novation reflects the strategic intent behind Lestari. It allows our group to focus on what we do best, which is the engineering, construction and operation of energy-efficient cooling systems, while Lestari takes on the asset ownership and capital deployment role. Together, the structure positions both entities to scale faster than either could alone, while giving customers continuity of service backed by reputable long-term institutional investors.”
