KUALA LUMPUR (April 25): Hektar Real Estate Investment Trust (REIT) will continue its mall enhancement initiatives this year, allocating RM20 million to increase the overall net lettable areas (NLA) of Landmark Central in Kedah by 20,000 sq ft to 300,000 sq ft.

Landmark Central is a neighbourhood mall located in Kulim, Kedah and was acquired by the trust manager in 2012. Currently, the mall has an area of 1.8 million sq ft, which houses major tenants such as Giant Superstore, The Store, MBO Cinemas and Ole Ole Superbowl.

"Since its acquisition in 2012, Landmark Central has emerged as the most promising among Hektar REIT's five malls in terms of upward rental trajectory.

"In order to optimise its exponential growth potential, we made a strategic decision to allocate RM20 million to embark on an asset enhancement initiative (AEI) for Landmark Central," said its chairman and executive chief executive officer Datuk Jaafar Abdul Hamid after the company's annual general meeting today.

He said the trust intends to improve and refresh the tenancy mix in Landmark Central to provide better experience to patrons as well as to cultivate a harmonious environment for retailers to attract more desired shoppers.

"The refurbishment initiative and other value creation strategies for our portfolio are envisioned to eventually enhance the financial performance for all our malls through potential rental increase," he added.

According to him, the AEI will involve the upgrading of public facilities, such as toilets, as well as expanding NLA of the retail space.

Jaafar said the AEI of Landmark Central is to be completed in the second quarter of 2017.

As at Dec 31, 2015, Landmark Central recorded a 2.4% increase in its occupancy rate to 99.3%.

For the financial year 2015 (FY15), Hektar REIT recorded a gross revenue of RM126 million, while net property income went up by 4.4% to RM76.5 million from RM73.28 million in FY14. The trust manager paid a total of 10.5 sen dividend in FY15.

Hektar REIT's portfolio of shopping malls includes Subang Parade in Subang Jaya, Selangor; Mahkota Parade in Melaka; Wetex Parade in Muar, Johor; and Central Square and Landmark Central in Kedah. theedgemarkets.com

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