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PETALING JAYA (July 24): Hektar Real Estate Investment Trust (Hektar REIT) has submitted its listing application to Bursa Malaysia Securities in connection with its proposed RM125 million acquisition and sale-and-leaseback of KYS KL East International School in Kuala Lumpur.
The REIT announced in a Bursa Malaysia filing on Thursday (July 23) that the application had been submitted on Wednesday (July 22), marking the next regulatory step for the proposed related-party transaction first announced on May 22.
The proposed acquisition involves the purchase of the vendor's leasehold interest over part of a 6-acre site in KL East, together with the existing school buildings and a new building to be constructed, for RM125 million.
The purchase consideration will be satisfied through RM106.55 million in cash and RM18.45 million via the issuance of new Hektar REIT units, with the issue price to be fixed at a discount of not more than 5% to the five-day volume weighted average market price, subject to a minimum price of 43.85 sen per unit.
Under the proposal, Hektar REIT will acquire the leasehold interest and simultaneously lease the property back to KYS College Sdn Bhd under a triple-net lease, allowing the operator to continue running KYS KL East International School. The master lease is also proposed to be extended from its current remaining tenure to an arrangement of up to 99 years, subject to approvals.
The acquisition remains subject to approvals from Hektar REIT unitholders, Bursa Malaysia for the listing of the consideration units, the lessor and other relevant parties. The REIT previously said the transaction is expected to be completed in the first quarter of 2027, barring unforeseen circumstances.
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