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KUALA LUMPUR (May 9): Hektar Real Estate Investment Trust (Hektar REIT) yesterday formally completed the acquisition and lease of two parcels of leasehold land in Alor Gajah, Melaka from KYS College Sdn Bhd, with the final tranche — Lot No 9807 measuring 6.3 acres.
According to its Bursa announcement, the completion follows the fulfilment of all conditions precedent under the sale and purchase agreement and the satisfaction of the purchase consideration.
The earlier acquisition of Lot No 9808, measuring 35.5 acres, had already been completed prior to yesterday's announcement, bringing the total land area acquired to approximately 41.8 acres.
The combined purchase consideration for both parcels totalled RM40 million — RM6 million for Lot 9807 and RM34 million for Lot 9808 — to be partially funded via RM24 million in borrowings. The transaction was first announced on July 11, 2025 and updated on April 17, this year.
The deal involves a 30-year triple net lease-back arrangement, with an option to extend for a further 30 years, whereby KYSA Education Sdn Bhd — the existing operator of Kolej Yayasan Saad Melaka — continues to occupy the properties following the transfer of ownership to Mtrustee Bhd, acting on behalf of Hektar REIT.
The acquisition was classified as a related party transaction under Chapter 10 of Bursa Malaysia's Main Market Listing Requirements.
Hektar REIT manages a portfolio of community-centric retail malls across Malaysia, including Subang Parade, Mahkota Parade, Wetex Parade, Central Square, Kulim Central, and Segamat Central.
The completed Melaka land acquisition marks the trust's strategic expansion into income-generating land assets linked to its education-sector tenant base, with potential to acquire completed buildings upon future development by the lessee.
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