Hektar Reit buys Alor Gajah land for RM40mil
KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar Reit) is buying two plots of land in Alor Gajah, Melaka measuring 16.92 hectares for RM40 million.
This is part of Hektar Reit's long-term strategy to enhance sustainable income and portfolio diversification.
In a filing with Bursa Malaysia, Hektar Reit said its trustee, MTrustee Bhd, had entered into two separate conditional sale and purchase agreements (SPAs) with KYS College Sdn Bhd for the acquisition.
The acquisition will be funded via a mix of cash and borrowings, with RM24 million in financing expected to be raised.
Upon completion of the SPAs, the properties will be leased to KYSA Education Sdn Bhd, the current operator of Kolej Yayasan Saad Melaka, under a 30-year triple net lease agreement, with an option to extend for another 30 years.
The lease agreements, already signed by MTrustee, include a 10 per cent rental escalation every three years and are expected to yield an average return of 8.45 per cent over the 30-year tenure.
"The rental shall commence upon the completion of the respective SPA," the Reit said.
Hektar Reit said the lease structure provides a stable, long-term income stream while offering an attractive risk-adjusted return.
"In line with its long-term strategy, Hektar Reit may also evaluate the acquisition of future developed portions of the site, allowing the company to secure incremental, recurring income streams and further strengthen its portfolio diversification through increased exposure to the resilient education sector," it added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
4 hours ago
- The Star
Higher 2Q net profit for UOA-REIT
PETALING JAYA: UOA Real Estate Investment Trust (UOA-REIT) expects the demand for office space to continue to improve gradually. In a filing with Bursa Malaysia, the REIT said its completed asset enhancement initiatives would help to generate interest in older buildings in its portfolio, while the initiatives continue into financial year 2025. For its second quarter ended June 30, 2025, UOA-REIT's net profit rose to RM10.89mil from RM8.1mil in the previous corresponding period, while revenue improved to RM30.09mil from RM27.75mil a year earlier. UOA-REIT said gross rental income during the quarter had increased by 9%, driven by improved occupancies. 'The increase in total expenditure was mainly due to increase in property operating expenses. The higher property operating expenses were primarily due to the increase in maintenance costs.'
Free Malaysia Today
9 hours ago
- Free Malaysia Today
Bursa edges up as value seekers drive selective accumulation
KUALA LUMPUR : Bursa Malaysia opened marginally higher today, supported by value-seeking investors engaging in selective accumulation. At 9.06 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 0.63 of a point to 1,520.03 from yesterday's close of 1,519.40. At the opening bell, the benchmark index was 0.08 of a point higher at 1,519.48. Turnover stood at 126.93 million shares, valued at RM68.23 million. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI closed lower yesterday in tandem with the weak regional performance. 'However, we expect value-seeking investors to continue supporting the market through selective accumulation. Hence, we anticipate the benchmark index to consolidate within the 1,510–1,520 range today,' he added. On the global front, Thong said Wall Street closed mixed, with the S&P 500 hitting another record high at 6,309.62 (+0.06%) as investors digested a new batch of earnings, including a tariff warning from General Motors. The Dow rose 0.4%, while the Nasdaq slipped 0.39% ahead of key earnings reports from major tech giants. Among the heavyweight counters, Maybank added four sen to RM9.57, Tenaga Nasional was two sen better at RM13.80, CIMB improved one sen to RM6.56, Public Bank lost three sen to RM4.28, while CelcomDigi and Press Metal were flat at RM3.79 and RM5.21, respectively. Active counters were led by NexG, followed by Enproserve, with both accumulating 1.5 sen each to 52 sen and 28 sen, respectively. PRG advanced half-a-sen to 9.5 sen, Eco-Shop added one sen to RM1.32, while EA Holdings was down half-a-sen to half-a-sen. On the broader index board, the FBM Emas Index was 13.04 points higher at 11,432.77, the FBMT 100 Index rose 10.54 points to 11,192.48, and the FBM Emas Shariah Index was up 7.64 points to 11,454.99. The FBM 70 Index gained 41.42 points to 16,597.29, while the FBM ACE Index trimmed 7.19 points to 4,617.41. By sector, the Financial Services Index put on 36.2 points to 17,346.87, the Energy Index edged down 0.46 of a point to 739.71, and the Plantation Index improved 12.40 points to 7,408.55. The Industrial Products and Services Index rose 0.11 of a point to 154.15.
The Star
12 hours ago
- The Star
Evergreen Cahaya in share subscription deal with DPK private equity to raise RM40mil
KUALA LUMPUR: Evergreen Cahaya Holdings Sdn Bhd, a wholly owned subsidiary of Evergreen Max Cash Capital Bhd , has entered into a subscription agreement with DPK Private Equity Sdn Bhd to raise RM40 million. In a Bursa Malaysia filing, Evergreen Max Cash said that under the deal, DPK Private Equity will subscribe to 40 million Islamic Redeemable Convertible Preference Shares (RCPS-i) at RM1 per share. It said the proceeds raised will be utilised as cash capital to fund the operations of Ar-Rahnu Tawarruq services of Evergreen Cahaya and its identified subsidiaries. "In particular, the gross proceeds raised will be channelled towards the disbursement of pawn loans through the Ar-Rahnu Tawarruq services outlets of the Evergreen Cahaya group as part of its ongoing efforts to expand and scale its Islamic pawnbroking operations in line with growing demand for Islamic pawn loans. "Pending the utilisation of proceeds arising from the issuance of RCPS-i for the above purpose, the proceeds would be placed in Shariah-approved investments in accordance with the terms of the subscription agreement,' it said. Furthermore, Evergreen Max Cash said the issuance of RCPS-i allowed it to maintain its equity interest in Evergreen Cahaya while managing the dilutive impacts, as the issuance of new ordinary shares in Evergreen Cahaya would have resulted in a direct dilution of its shareholdings. "The dilution impact to Evergreen Max Cash's shareholding in Evergreen Cahaya will be on a progressive basis as and when the RCPS-i are converted into new ordinary shares in Evergreen Cahaya in accordance with the terms of the subscription agreement,' it said. - Bernama
