Hektar REIT to acquire 90% stake in Perlis land for solar farm project

• MTrustee Bhd, acting on behalf of Hektar REIT, has entered into an agreement with Wan Realty Sdn Bhd and Darul Modal Sdn Bhd for the acquisition, valued at RM26 million, according to a bourse filing on Tuesday.

KUALA LUMPUR (June 24): Hektar Real Estate Investment Trust (KL:HEKTAR) plans to acquire a 90% equity stake in Terramark Sdn Bhd, which owns a 197.76-acre leasehold land in Perlis earmarked for a private solar farm project.

MTrustee Bhd, acting on behalf of Hektar REIT, has entered into an agreement with Wan Realty Sdn Bhd and Darul Modal Sdn Bhd for the acquisition, valued at RM26 million, according to a bourse filing on Tuesday.

Darul Modal is the largest shareholder in Terramark with a 60.37% stake, followed by Wan Realty with 29.63%. The remaining 10% is held by Menteri Besar Incorporated, the Perlis state’s investment and development arm.

The land, located in Chuping, was formerly used as a sugarcane plantation, said Hektar REIT, adding that it will be converted to industrial use at the vendor’s cost.

The land has been earmarked for a private solar farm under the proposed Corporate Renewable Energy Supply Scheme, to be developed by a third-party lessee through a development rights agreement.

As part of the deal, a 25-year triple net master lease arrangement will be established between Terramark and the lessee for the ground lease, offering an average yield of 9.55% over the lease term.

The lease also includes a built-in 10% rent escalation every three years, providing inflation protection and supporting growth in distribution per unit, said Hektar REIT.

The REIT said the acquisition aligns with its strategy to diversify into industrial and renewable energy sectors, expanding its asset base beyond retail properties.

It plans to fund the acquisition using internally generated funds, with completion targeted for the fourth quarter of the year.

Hektar REIT has been actively diversifying its portfolio, including the acquisition of its first education asset, Kolej Yayasan Saad Melaka, for RM148.5 million in July last year, and a light industrial asset in Penang for RM30 million earlier this year.

The REIT’s portfolio also includes several commercial properties such as Subang Parade in Subang Jaya, Mahkota Parade in Melaka, Wetex Parade and Classic Hotel in Muar, Central Square in Sungai Petani, Kulim Central in Kulim and Segamat Central in Segamat.

Hektar REIT units closed half a sen or 1.2% higher at 43.5 sen on Tuesday, giving the trust a market capitalisation of RM372.4 million.

Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.