This forms part of its strategy to increase the overall net lettable areas (NLA) of malls within its portfolio, which currently stands at 1.8 million sq ft.
“Since its acquisition in 2012, Landmark Central has emerged as the most promising among Hektar REIT’s five malls in terms of upward rental trajectory. In order to optimise its exponential growth potential, we made a strategic decision to allocate RM20mil to embark on an asset enhancement initiative (AEI) for Landmark Central.
The AEI will eventually increase the net lettable area (NLA) of the shopping mall by approximately 20,000 sq ft which will offer additional footprint for retailers who wish to be part of Landmark Central’s growing number of tenants,” chairman and executive chief officer Datuk Jaafar Abdul Hamid told the press following its AGM earlier on Monday.
“We intend to also improve and refresh the tenancy mix in Landmark Central to provide not just a better experience for our customers, but to also cultivate a harmonious environment for our retailers to ensure that we attract the desired shoppers. The refurbishment initiative and other value creation strategies for our portfolio are envisioned to eventually enhance the financial performance for all our malls through potential rental increase,” added Jaafar.
With retailers such as Giant Superstore, The Store, MBO Cinemas and Ole Ole Superbowl, Landmark Central is able to capitalise on its unique selling proposition as an all-encompassing neighbourhood mall. As at 31 December 2015, Landmark Central has shown a growth of 2.4% in its occupancy rate resulting in a high figure of 99.3% as compared to 96.9% in 2012.
Hektar REIT’s portfolio of shopping malls include Subang Parade in Subang Jaya, Selangor, Mahkota Parade in Melaka, Wetex Parade in Muar, Johor, Central Square in Sungai Petani, Kedah and Landmark Central in Kulim, Kedah – all with a catchment population of three million residents.
Hektar REIT is expected to announce its first quarter results later today.
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