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- The 21-storey property has remained vacant since 2018, marking the revival of a key hospitality asset in Kedah.
KUALA LUMPUR (Oct 15): AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) (KL:ARREIT) has entered into a tenancy agreement with Urban Collection Sdn Bhd for the long-term lease and operation of the former Holiday Villa Alor Setar, a 21-storey property that has remained vacant since 2018, marking the revival of a key hospitality asset in Kedah.
“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,” said AmanahRaya-Kenedix REIT Manager Sdn Bhd managing director Datuk Mohd Iskandar Dzulkarnain Ramli at the signing event.
Urban Collection, previously known as Urban Inn Sdn Bhd and a subsidiary of Oriental Interest Bhd (KL:OIB), will lease the property located within the City Plaza development for 15 years starting from March 29, 2026. The property spans 150,000 sq ft and was previously operated under the Holiday Villa brand.
The agreement is structured as three consecutive terms and includes a double net lease arrangement with a 10% rental escalation at each renewal.
Operations under the new operator are expected to commence by May 1, 2026.
Refurbishment and upgrading works are planned to reposition the asset, with enhancements such as co-working spaces, modern accommodation, and self-service retail features aimed at catering to evolving traveller expectations.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
