Hektar REIT Announces Proposed Acquisition and Lease of Land in Melaka

Hektar Real Estate Investment Trust (HEKTAR REIT) has announced that its trustee, MTrustee Berhad, will acquire two parcels of leasehold land in Melaka from KYS College Sdn Bhd (KCSB) for a total consideration of RM40 million. The land, measuring approximately 41.8 acres, will be leased to KYSA Education Sdn Bhd (KESB) for a 30-year triple net lease arrangement. The proposed acquisition and lease are not inter-conditional, and the transaction has been reviewed and executed in the best interests of the REIT.

Key Takeaways:

• Hektar REIT's trustee, MTrustee Berhad, will acquire two parcels of leasehold land in Melaka from KYS College Sdn Bhd (KCSB) for a total consideration of RM40 million (RM6.0 million for Property 1 and RM34.0 million for Property 2).
• The land measures approximately 41.8 acres, with Property 1 being a 6.3-acre parcel and Property 2 being a 35.5-acre parcel.
• The proposed acquisition and lease arrangement involves KESB, the existing operator of Kolej Yayasan Saad Melaka, which will lease the land for a 30-year triple net lease arrangement.
• The transaction has been reviewed and executed solely in the best interests of the REIT.
• The Proposed Acquisition and Lease for Property 1 and Property 2 are not inter-conditional.

Statistics:

• Total consideration for the proposed acquisition: RM40 million
• Purchase consideration for Property 1: RM6.0 million
• Purchase consideration for Property 2: RM34.0 million
• Land area for Property 1: 6.3 acres
• Land area for Property 2: 35.5 acres
• Total land area: 41.8 acres
• Lease term: 30 years
• Lease arrangement: Triple net lease

Sources:

• Hektar Asset Management Sdn Bhd's announcement to Bursa Malaysia Stock Exchange [1]
• Hektar REIT's website [2]