KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) has signed a tenancy agreement with Urban Collection Sdn Bhd to lease and operate the 21-storey Ex-Holiday Villa Alor Setar within the City Plaza development in Kedah.
In a statement, AmanahRaya REIT said the signing marks a key milestone in its portfolio optimisation strategy, revitalising one of its landmark assets through a long-term partnership with an experienced hospitality operator.
Under the agreement, Urban Collection will lease the 150,000 sq ft hotel for a 15-year term (structured as three consecutive terms), with tenancy commencing on Marach 29, 2026 and operations expected to begin by May 1, 2026.
The tenancy is structured as a double net lease with a 10% rental escalation upon each renewal term, providing steady income growth for the trust throughout the lease period.
The property, formerly operated by Holiday Villa Alor Setar and vacant since 2018, will undergo refurbishment to rejuvenate its facilities and strengthen its position in Alor Setar’s hospitality market.
Urban Collection plans to reposition the property with a refreshed concept featuring co-working spaces, modern accommodation, and retail offerings with self-service amenities and vending solutions to meet evolving traveller preferences.
“This signing represents the reactivation of a key hospitality asset within our portfolio. We are pleased to collaborate with Urban Collection, whose track record in hotel and service management complements our vision of enhancing asset value and long-term income stability for unitholders,” AmanahRaya-Kenedix REIT Manager Sdn Bhd managing director Datuk Mohd Iskandar Dzulkarnain Ramli.
