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PETALING JAYA (Sept 21): Pekat Group Bhd’s wholly-owned subsidiary Pekat Teknologi Sdn Bhd (PTSB) has entered into a conditional lease agreement for the proposed lease of about 470 acres in Sungai Petani, Kedah, for renewable-energy activities.
In a Bursa Malaysia filing on Monday (Sept 21), Pekat said estimated aggregate lease rental over the initial 24-year term is RM54.5 million, assuming the lease commences and based on the estimated acreage and rental escalation under the agreement.
The site comprises Geran 10854 Lot 8601, Geran 10855 Lot 8602 and Geran 10535 Lot 8603 in Mukim Sungai Petani, Kuala Muda district.
It is intended for renewable-energy activities, including the development, construction, installation, operation and maintenance of solar photovoltaic systems, battery energy storage systems and related infrastructure.
The lease is conditional upon PTSB obtaining the necessary approvals, consents, permits, licences and authorisations, including planning permission, and securing an offtake agreement in a form and substance acceptable to it for electricity generated at the site.
The conditions must be fulfilled by the cut-off date, defined as the final day of a three-year exclusivity period beginning from the agreement date, unless extended by mutual agreement.
During the exclusivity period, the lessor may not dispose of, lease, charge, encumber or otherwise deal with the site in a manner that conflicts with or adversely affects PTSB’s rights under the agreement.
Subject to the conditions precedent being fulfilled, the lease will run for 24 years from a commencement date determined by PTSB. PTSB may, at any time before the unconditional date, notify the lessor in writing of the commencement date, which must fall within five months of the notice.
The agreement provides for a 24-month construction period, followed by a 21-year operating period. PTSB also has an option to extend the lease by between one and five years, subject to the agreement’s terms.
Monthly rent is set at RM350 per acre. It will increase by 3% on every second anniversary of the commencement date following completion of the construction period.
PTSB must pay a RM493,500 downpayment, equivalent to three months’ rent, within 30 days of the agreement date as consideration for the lessor reserving the site.
The downpayment will be maintained throughout the exclusivity period. If the lease commences, it will be converted into a refundable security deposit and retained throughout the lease term.
Pekat did not identify the lessor, citing a confidentiality obligation. It said the Malaysian private company is the beneficial owner of the site and is principally involved in oil-palm plantation and investment holding.
The group said the proposed lease is not expected to materially affect its net assets, earnings or gearing for the financial year ending Dec 31, 2026.
Pekat did not disclose the proposed development’s generation capacity, battery storage capacity, development cost, financing arrangements or prospective offtake counterparty.
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