Hektar REIT undertakes RM62 mil asset enhancement initiatives

KUALA LUMPUR (April 26): Hektar Real Estate Investment Trust (REIT) is undertaking new asset enhancement initiatives (AEIs) worth RM62 million for two of its malls.

The initiatives will see the creation of up to a total of 60,000 sq ft of net lettable area (NLA), said the REIT's manager Hektar Asset Management Sdn Bhd.

"Our strategies for 2017 remains three-pronged: implementing AEIs to increase NLA, focusing on completion of acquisition of 1Segamat as well as improving efficiency in tenant management to optimise rental returns," said Hektar Asset Management chief executive officer Datuk Hisham Othman after the group's annual general meeting today.

The AEIs will see a revamp of its Landmark Central mall in Kulim, Kedah, with expected completion this August, as well as its Subang Parade mall in Subang Jaya, to be completed in mid-2018.

Hektar REIT bought the 1Segamat mall in Segamat, Johor, in June last year for RM104 million. The acquisition is expected to be completed in the third quarter of this year, said Hisham.

Hektar REIT currently has five malls under its portfolio with a market valuation of RM1.1 billion and NLA of 1.8 million sq ft as at Dec 31, 2016. —

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