Hektar REIT buys industrial asset in Penang for RM30 mil from MQ Tech’s unit

• The acquisition brings Hektar REIT’s portfolio to eight properties, which currently include shopping malls and an educational facility.

KUALA LUMPUR (Feb 19): Hektar Real Estate Investment Trust (KL:HEKTAR) is acquiring a light industrial asset in the Bayan Lepas Free Industrial Zone, Penang, for RM30 million from Microlead Precision Technology Sdn Bhd (MPT), a wholly owned subsidiary of MQ Technology Bhd (KL:MQTECH).

The property, designed to meet the stringent demands of semiconductor manufacturing and logistics, is being purchased at a 9.1% discount to its market value, which is derived based on the income method approach, according to the REIT’s statement.

The acquisition brings Hektar REIT’s portfolio to eight properties, which currently include shopping malls and an educational facility.

The REIT emphasised that this acquisition marks a significant step towards diversifying into the industrial sector, strengthening its presence in the advanced manufacturing and technology supply chain while reducing reliance on retail assets.

MTrustee Bhd, acting on behalf of Hektar REIT, signed a conditional sale and purchase agreement with MPT on Wednesday, according to its bourse filing. The transaction is expected to be completed in the second half of this year.

Upon completion, MPT will lease back the property for a 15-year term under a triple net master lease arrangement, with an option to extend for another 15 years. The lease includes a 5% rental escalation every three years.

Hektar REIT said the transaction's triple net master lease arrangement shifts property-related expenses, such as taxes, insurance and maintenance, to the tenant, providing the company direct passive income over the lease term.

This acquisition follows Hektar REIT’s strategic diversification efforts, which saw the company purchase its first educational asset, Kolej Yayasan Saad Melaka, for RM148.5 million in July last year.

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

Looking ahead, the REIT said it continues to explore opportunities to expand its portfolio with assets that align with its strategic priorities.

“By focusing on non-retail assets towards high-growth industries and critical learning facilities, the REIT said it is well-positioned to navigate dynamic market conditions and deliver consistent returns,” it added.

Hektar REIT units closed unchanged at 52.5 sen on Wednesday, giving it a market capitalisation of RM372.4 million.

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