RM2.4B ASSET VALUE TARGET ON TRACK
Firm in negotiation with mall owner to acquire one more asset this year
HEKTAR Real Estate Investment Trust (Hektar REIT) is on track to double its asset value to RM2.4 billion by 2026 as it hunts for one more asset this year.
Chief executive officer Datuk Hisham Othman said the firm is in active negotiations with a mall owner on a potential acquisition.
The asset would likely be located
outside the Klang Valley as the firm aims to move away from the overcrowded malls in the city centre, he said.
“Our focus in terms of geographical asset diversification has proven effective in mitigating the negative exposure of economic downturn affecting the industry.
“We are tapping the stable purchasing power in smaller underserved cities by bringing in new local and international brands and retailers to the area,” he said after Hektar REIT’s annual general meeting, here, yesterday.
“We believe that strategically selecting the location of our assets has in many ways secured our success to date,” he said.
Hektar REIT’s asset value stood at RM1.2 billion following the acquisition of Segamat Central that caters to a market catchment of three million shoppers.
Last year, the firm secured a portfolio occupancy rate of 92.1 per cent, the lowest since 2007 but slightly above the industry average of 92 per cent.
Hisham said Hektar REIT will continue to focus on improving shopping malls under its portfolio which include asset enhancement and energy saving initiatives, extensive tenancy remixing and reconfiguration of lettable space.