PETALING JAYA: Pekat Group Bhd
’s wholly-owned subsidiary has entered into a conditional agreement to lease about 470 acres of land in Sungai Petani, Kedah, for renewable energy development.
In a filing with Bursa Malaysia, Pekat said Pekat Teknologi Sdn Bhd (PTSB) signed the agreement with a Malaysian company involved in oil palm plantation and investment holding.
The proposed lease is for 24 years, with aggregate rental payments estimated at RM54.5mil based on the acreage and rental escalation under the agreement.
It said the land will be used for renewable energy activities, including the development and operation of solar photovoltaic systems and battery energy storage systems, as well as related infrastructure.
The lease is subject to PTSB obtaining the necessary regulatory approvals and securing an acceptable off-take agreement for electricity generated at the site.
Under the agreement, PTSB will have a three-year exclusivity period. The lease rental is set at RM350 per acre per month, with a 3% increase every two years following completion of the construction period.
The specialist in solar photovoltaic and earthing and lightning protection industries firm will also pay a RM493,500 down-payment, equivalent to three months’ rental, which will be converted into a refundable security deposit.
Pekat said construction is expected to take 24 months, followed by a 21-year operating period. PTSB will also have the option to extend the lease by a further one to five years.
Due to the confidentiality obligation, Pekat is unable to disclose the identity of the lessor.
