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Tuesday, February 19, 2008

Hektar REIT buys shopping complex in Muar

KUALA LUMPUR: Hektar Real Estate Investment Trust (REIT) has acquired a shopping complex and hotel tower, together with a basement car park, in Muar, Johor, from Wetex Realty Sdn Bhd.

In a filing with Bursa Malaysia yesterday, Hektar REIT said the property was acquired for a total RM117.5mil and it would enter into a lease-back arrangement with Wetex in respect to the hotel.

The 10-year lease term shall commence on the date of completion of the sale and purchase agreement with an option for the renewal of the lease for a further 10 years from the 10th anniversary of the lease commencement date, it said in the statement.

The rationale for the acquisition of the property and the lease back of the hotel was yield accretion to Hektar REIT and would provide for an expected increase in income for the financial year ending Dec 31 (FY08), it said.

By The Star

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