This article first appeared in The Edge Malaysia Weekly on November 2, 2026 - November 8, 2026

THERE is a possibility that Hektar Real Estate Investment Trust (KL:HEKTAR) could withdraw its proposal to acquire KYS KL East International School (KYSKLEIS) from the Kolej Yayasan Saad group. According to sources, a unitholders meeting slated for Nov 16, at which the proposed acquisition would be voted on, may be called off.

KYSKLEIS is linked to Tan Sri Halim Saad, the founder of Kolej Yayasan Saad. It is worth noting that the REIT has already acquired two assets from the education group in the last three years.

Hektar REIT made a proposal to acquire the international school in Kuala Lumpur for RM125 million from KYS College Sdn Bhd (KCSB) in May. The proposed acquisition is to be funded in cash (RM106.6 million) and Hektar REIT units.

The international school was established in 2023 and caters for the pre-school level up to Year 11. The school’s facilities are located on a 9.5-acre site, leased for 30 years and expected to accommodate up to 1,300 students upon full completion of all the buildings. Of the three phases, Phase 1 and 2 for pre-school and primary school students, have been completed.

In June, Hektar REIT told The Edge that the transaction was structured as a sale-and-leaseback and would provide it with contractually secured, inflation-linked income growth. It added that the acquisition was consistent with the REIT’s strategy to grow a diversified, income-generating portfolio anchored in defensive, long-duration assets that have been evaluated on commercial merits in the best interests of unitholders.

Hektar REIT’s assets primarily comprise retail properties, but it started to expand its portfolio in 2024 to include the ownership and leasing of education assets. The REIT is managed by Hektar Asset Management Sdn Bhd.

The potential withdrawal of its proposed acquisition of KYSKLEIS follows growing resentment among a group of unitholders over certain management decisions taken at Hektar REIT.

At its annual general meeting in May 2025, shareholders with 257 million units, representing 36% of all the units, rejected a resolution for the REIT to issue new units amounting to 20% of its existing units. When a similar resolution was tabled at the unitholders’ meeting in April this year, it was rejected again by unitholders with 284 million units, representing about 40% of all the units.

Sources say a group of unitholders opposed the acquisition of a string of assets that are ultimately linked to Kolej Yayasan Saad.

In 2024, Hektar REIT completed the acquisition of Kolej Yayasan Saad Sdn Bhd in Melaka from KCSB for RM148.5 million cash, which received the approval of an overwhelming majority of unitholders.

A year later, the REIT entered into an agreement with KCSB to acquire two parcels of land located next to Kolej Yayasan Saad, measuring more than 41 acres, for RM40 million cash. It justified the acquisition by saying it would protect the interests of Kolej Yayasan Saad and reserve the land for future expansion. The acquisition did not require unitholder approval and the deal was concluded in July this year.

The two largest unitholders of Hektar REIT are Hektar Black Sdn Bhd (16.22%), with a substantial portion of the units pledged to Kenanga Nominees, and Upayapadu (M) Sdn Bhd (14.336%) as at Oct 20. Upayapadu, controlled by Datuk Seri Dr Wong Yeon Chai, has seen its stake in the REIT increase from just 5.065% in June 2025.

It is worth noting that Datuk Eddie Ong, who was the third largest unitholder of Hektar REIT, ceased to be a substantial unitholder on Aug 7 this year. He is currently a substantial shareholder of KIP REIT.

Hektar REIT’s unit price has risen 34.7% over the past year. It closed at 56 sen last Friday, giving the REIT a market capitalisation of RM397.2 million. 

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