KUALA LUMPUR (Oct 9): Hektar Real Estate Investment Trust (Hektar REIT) has terminated its proposed RM26 million acquisition of a 90% stake in Terramark Sdn Bhd, citing the sellers’ failure to fulfil several key conditions precedent.
In a bourse filing on Friday, the retail-focused REIT said it had aborted plans to acquire 16.34 million shares in Terramark from Wan Realty Sdn Bhd and Darul Modal Sdn Bhd. It did not specify which conditions had not been met.
The deposit paid for the proposed acquisition will be refunded, Hektar REIT said, adding that the termination is not expected to have a material impact on its earnings, net asset value, gearing, unitholders’ capital or substantial unitholders’ holdings for the financial year ending Dec 31, 2026.
Terramark owns an 80.03-hectare leasehold property in Chuping, Perlis, with a lease expiring in May 2074. The land is currently designated for agricultural use and is intended to be converted to industrial use.
The property had been earmarked for a private solar farm under the proposed Corporate Renewable Energy Supply Scheme (CRESS).
Hektar REIT owns about two million sq ft of retail space, an education property and an industrial asset across five states, with total assets valued at RM1.53 billion. Its portfolio includes Subang Parade in Subang Jaya, Selangor; Mahkota Parade in Melaka; Kolej Yayasan Saad in Ayer Keroh, Melaka; Wetex Parade and Classic Hotel in Muar, Johor; Central Square in Sungai Petani and Kulim Central in Kedah; Segamat Central in Johor; and a factory in the Bayan Lepas Free Industrial Zone in Penang.
Hektar REIT units closed one sen or 2.02% higher at 50.5 sen on Friday, valuing the trust at RM358.19 million. The units have gained 16% so far this year.