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), has announced the activation of its operating platform through its first investment in operating assets owned by KIP Real Estate Investment Trust (“KIP REIT”). This marks the commencement of a 20-year cooling services agreement covering eight KIPMall sites, with total capital deployment of approximately RM23 million.

Through a novation arrangement between Pacific Trustees Berhad (acting solely as trustee for KIP REIT), KJTS SB and Lestari, Lestari 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 and chilled water supply across the portfolio, while KJ Engineering Sdn. Bhd. (“KJE”), a wholly-owned subsidiary of KJTS, will undertake 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 O&M 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 commercial real estate sector. It also marks the formal activation of Lestari as an operating platform, strengthening its role in delivering sustainable cooling infrastructure solutions at scale.

As previously announced, Lestari is expected to be capitalised at up to MYR 1.5 billion (approximately USD 380 million) through aggregate commitments and debt funding, with an addressable market exceeding MYR 2 billion (approximately USD 500 million) in annual project deployment opportunities. KWAP’s participation in Lestari aligns with the Ministry of Finance’s GEAR-uP programme, which aims to catalyse growth in high-value, high-impact sectors and support the scaling of Malaysian companies. The investment is also channelled through KWAP’s Dana Iklim+, which focuses on climate solutions and investments aligned with Malaysia’s transition towards a low-carbon economy. The platform 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 as the platform evolves into a fully operational structure. With an initial base of revenue-generating assets and additional capacity coming online, she noted that Lestari now has meaningful scale and visibility. The focus will remain on disciplined investment in high-quality cooling infrastructure, building a portfolio that delivers stable, recurring cash flows while advancing energy efficiency and broader sustainability outcomes.

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 is a key step in strengthening the operational resilience and sustainability of KIP REIT’s retail assets. She added that the partnership enhances infrastructure efficiency while ensuring continuity of service and consistent experience for tenants and shoppers across all KIPMall sites.

Stonepeak Managing Director, Zach Ennis, stated that the activation of Lestari through its first asset injection reflects a disciplined approach to platform and asset creation across Asia. With seven operating sites already in service, he described Lestari as an income-generating infrastructure platform and expressed confidence in 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 upgraded systems expected to avoid approximately 3,408 tonnes of CO₂ emissions per annum, or around 68,157 tonnes over the 20-year contract period. He added that this novation structure reflects the strategic intent behind Lestari by allowing KJTS to focus on its core expertise in engineering, construction and operation of energy-efficient cooling systems, while Lestari assumes the asset ownership and capital deployment role. This structure, he noted, enables both parties to scale more effectively while ensuring continuity of service supported by long-term institutional investors.