KUALA LUMPUR: Hektar Real Estate Investment Trust (REIT) has proposed to acquire buildings from KYS College Sdn Bhd for RM150 million.
The proposed acquisition is to acquire one-half, two and three-storey buildings categorised into administration, academic, residential and student facilities forming part of the fully residential and co-educational private school known as Kolej Yayasan Saad in Ayer Keroh, Melaka.
In order to partially finance the purchase consideration, the board has proposed to undertake a placement of up to 99.76 million new units in Hektar REIT, representing up to 20 per cent of the existing issued units.
"The proposed acquisition and lease will improve the diversity of Hektar REIT’s overall property mix with lesser reliance on the retail sector.
"This will enlarge the net lettable area of Hektar REIT by 396,874 square feet (sq ft) or 20 per cent from the existing size of two million sq ft,” it said in a filing with Bursa Malaysia today.
The company said that the total asset value of Hektar REIT would also increase by RM150 million or 12 per cent from RM1.21 billion as at Dec 31, 2022.
Barring any unforeseen circumstances, the proposals are expected to be completed in the second quarter of 2024. - Bernama
