KUALA LUMPUR: Hektar Real Estate Investment Trust
(Hektar REIT) is acquiring a property with factory buildings for industrial, warehousing, and office use in Bayan Lepas Industrial Park (Phase 4), Penang, from Microlead Precision Technology Sdn Bhd for RM30mil in cash.
In a filing with Bursa Malaysia, Hektar REIT said the acquisition is in line with the company’s investment objective to deliver long-term and sustainable distribution of income to unitholders by acquiring quality real estate with stable recurring income.
“The proposed acquisition would further improve the asset diversification of the overall property portfolio of Hektar REIT with the inclusion of its first maiden industrial asset.”
“This is a significant opportunity for Hektar REIT to begin its industrial footprint in Bayan Lepas, Penang by acquiring quality yield-accretive assets with modern facilities at a prime location.”
Upon completion of the sale and purchase agreement, Hektar REIT said the property will be leased back to the vendor for a 15-year tenure, with an option to extend for a further 15-year period.
“The triple net master lease arrangement with the Vendor offers 7.5% yield, with 5% rental escalation every three years. The proposed acquisition is therefore expected to contribute positively to Hektar REIT's income.”
Meanwhile, Hektar REIT’s chief executive officer Zainal Iskandar Ismail said the acquisition underscored the company’s ability to identify and capitalise on opportunities in key growth markets.
“By focusing on properties that support advanced industries, we are positioning Hektar REIT for long-term success and delivering value to our shareholders.”
