KUALA LUMPUR (July 8): Hektar Real Estate Investment Trust (KL:HEKTAR) has acquired its first industrial property, located in the Bayan Lepas Free Industrial Zone in Penang, further growing its portfolio beyond its bread-and-butter retail sector.

In a statement on Wednesday, Hektar REIT said the RM30 millllion acquisition is part of its larger strategy of acquiring properties in high-demand markets to reduce its concentration in the retail sector. Since this shift, the trust has acquired land for colleges, an international school and now the industrial sector.

The acquisition brings the REIT’s portfolio to a total of eight properties.

“The completion of this acquisition is a significant milestone for Hektar REIT. It reflects our disciplined approach to capital allocation and our commitment to building a more resilient, diversified portfolio that is positioned to generate sustainable returns for our unitholders,” said Zainal Iskandar, executive director and CEO of Hektar Asset Management, in the statement.

Hektar REIT said the latest purchase was transacted at a 9.1% discount to the property’s independently assessed market value, while delivering an initial yield of 7.5% on a triple net lease basis, with all property-related outgoings like taxes, insurance and maintenance borne by the tenant.

This structure provides the REIT with direct, passive income over the full lease term of 15 years with minimal operational burden. It also provides a stable income stream through fixed rental escalation, the REIT noted.

Hektar REIT units eased 1.2% to 41 sen on Wednesday, giving a market capitalisation of RM290.8 million. Year to date, the counter has fallen by 5.75%.