Latest news with #HektarREIT
The Star
11-07-2025
- Business
- The Star
Hektar REIT to acquire 41.8 acres in Melaka for RM40mil, signs 30-year leaseback deal
KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) has proposed to acquire two parcels of leasehold land in Melaka, totalling 41.8 acres for RM40mil. In a filing with Bursa Malaysia, Hektar REIT said its trustee, MTrustee Bhd, entered into two conditional sale and purchase agreements with KYS College Sdn Bhd for the proposed acquisition. The land comprises a 6.3-acre parcel priced at RM6mil and a 35.5-acre portion of land priced at RM34mil, both located in Mukim Durian Tunggal, Alor Gajah. The properties will also be leased back to the vendor as part of the agreement. As part of the deal, the land will be leased back to KYS College. MTrustee has also signed two lease agreements with KYSA Education Sdn Bhd, the current operator of Kolej Yayasan Saad Melaka, for a 30-year triple net lease on the properties. The lease includes a 10% rental escalation every three years, with a combined average yield of 8.45% over the 30-year term. It added that the lessee also has the option to extend the lease for another 30 years, and subsequently until the end of the leasehold period. Hektar REIT said the proposed acquisition will be funded through a combination of cash and borrowings, with RM24mil in financing expected to be raised. It said the proposed acquisition and lease align with its long-term goal of providing sustainable income to unitholders by investing in quality real estate with stable returns. Although the acquisition currently involves only the land, it lays the groundwork for future expansion of KYS. Once the lessee completes development on the site, Hektar REIT may choose to acquire the completed building, shifting the rental structure to one based on gross floor area. It said this would boost future income potential and further diversify the REIT's portfolio with greater exposure to the growing education sector.
The Star
24-06-2025
- Business
- The Star
Hektar REIT expands into industrial and green energy with RM26mil Terramark deal
Hektar Asset Management Sdn Bhd executive director and chief executive officer Zainal Iskandar PETALING JAYA: Hektar Real Estate Investment Trust (Hektar REIT) is acquiring a 90% stake in Terramark Sdn Bhd from Wan Realty Sdn Bhd and Darul Modal Sdn Bhd for RM26mil to diversify its portfolio into the industrial and renewable energy sectors. In a filing with Bursa Malaysia, Hektar REIT said Terramark owns a 60-year piece of leasehold agricultural land in Perlis measuring approximately 197.76 acres that is intended for conversion to industrial land use. 'By acquiring a controlling stake in Terramark, which owns a substantial landbank in Chuping, Perlis, Hektar REIT will expand its asset exposure beyond retail properties. 'This move not only strengthens the REIT's presence in high-growth sectors but also strategically positions it to benefit from Malaysia's renewable energy transition through the potential development of a solar farm on the acquired property.' Hektar REIT said the land is a former sugarcane plantation area undergoing transformation into an industrial and renewable energy hub. It is well connected, being only 8.8 km from Jalan Kangar–Padang Besar and 10.9 km from the Changlun–Kuala Perlis Expressway. 'This acquisition marks a quantum leap in Hektar REIT's diversification strategy. By securing a prime solar-ready landbank, we are sowing the seeds for long-term, inflation-protected income while supporting Malaysia's renewable energy goals. 'Coupled with our rooftop solar rollout and recent industrial investment, this first move on a pure ground-lease model positions Hektar REIT as a multi-asset platform creating sustainable value. Globally, REITs integrating renewable infrastructure into their portfolios have seen increasing institutional investor interest, driven by the shift toward ESG mandates and stable yield profiles,' Hektar Asset Management chief executive officer Zainal Iskandar said in a statement.
New Straits Times
21-05-2025
- Business
- New Straits Times
Hektar REIT charts pivot beyond retail
KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) is charting a bold pivot beyond malls, eyeing high-growth sectors including education, digital infrastructure, industrial assets and potentially renewable energy concessions. Executive director and chief executive officer Zainal Iskandar Ismail said the shift in strategy has already been presented to shareholders. "Of course, moving from 100 per cent retail to new diversification takes time. We have all the deals pipelined in place and we are in the position to choose. "At the same time, I think we are also looking at whatever asset that we have now, we will try to maximise the return in terms of capital valuation and also in enhancement," he said at a press conference today. Zainal said that Hektar is evolving into a different entity moving forward, especially after witnessing how the retail sector was impacted by the Covid-19 pandemic. "With all this trade war between America and China, you are going to see a potential setback in terms of growth. So retail will be affected. "I think moving forward, we are looking at other high growth areas," he added. When asked about the type of digital assets Hektar REIT plans to acquire, Zainal said an official announcement will be made at the appropriate time. He noted that any shift in focus must be backed by the strength of diversification. "In our case, we've been in the retail business since our inception in 2006, so any move must complement and strengthen our core business. "To diversify into something, you must have a new model that actually complements or strengthens your current business model," he said. Zainal said the REIT is aiming to acquire assets that can substantially extend its weighted average lease expiry (WALE). The goal, he added, is to push that figure beyond 10 years, a target achievable only through select asset classes that offer such long-term tenures. "Similarly, digital assets are another area we believe hold strong potential. Unlike malls, where you are limited by net lettable area, digital infrastructure, such as data centers, offers tremendous scalability. It's all about data and traffic, and the revenue model is quite different. "To me, I think moving forward, in order for us to prepare Hektar to become a foolproof REIT with a longer term of expiry, with a secure cash flow in order to offer a better yield, we need to consider this kind of alternative asset class," he added.
New Straits Times
06-05-2025
- Business
- New Straits Times
Hektar REIT taps Samaiden for solar rollout across five malls
KUALA LUMPUR: Hektar Real Estate Investment Trust (REIT) has collaborated with Samaiden Group Bhd on a solar deal, aligning with Malaysia's renewable energy transition and long term carbon reduction targets. Under the partnership, solar photovoltaic (PV) systems will be installed across five Hektar REIT's shopping centres under a zero upfront capital model. Samaiden will lead the end-to-end execution while Hektar REIT will benefit from a fixed clean energy supply rate. In a joint statement, both parties said this structure helps mitigate electricity price volatility and contributes to financial stability through predictable energy costs. The initiative is expected to generate long-term energy cost savings of about RM41.3 million over the partnership period while avoiding an estimated 98,640 tonnes of carbon emissions. "By integrating rooftop solar PV systems across our malls, we are not only reducing our carbon footprint, but also increasing energy efficiency and lowering the total electricity consumption, potentially by up to 15 per cent annually compared to the previous year. "This is a strategic move that supports national climate commitments while delivering tangible returns to our unitholders, tenants, and communities," said Hektar Asset Management Sdn Bhd chief executive officer Zainal Iskandar Ismail. Samaiden group managing director Datuk Chow Pui Hee said the company's zero-capex solar programme provides businesses with the opportunity to integrate sustainable energy solutions without financial barriers. "As one of Malaysia's leading renewable energy providers, Samaiden is committed to delivering innovative solar solutions that support carbon reduction and enhance energy resilience. "By partnering with forward-thinking industry players like Hektar REIT, we hope to drive greater adoption of solar energy in Malaysia's commercial and retail sectors," she added.
