Hektar REIT will upgrade malls
Group will also look out for more takeover targets to boost asset base
Adding value: Zalila says the company will emulate the AEIs executed in Johor for its Central Square in Sungai Petani.
PETALING JAYA: Hektar Real Estate Investment Trust (REIT) will continue with its asset enhancement initiatives (AEI) on its two recently-acquired malls in Kedah, while still on the lookout for more targets to add on to its burgeoning asset base.
Neighbourhood mall specialist Hektar Asset Management Sdn Bhd executive director and chief financial officer Zalila Mohd Toon said the company would emulate the AEIs executed in Wetex Parade, Johor, which had seen a rebranding success for the mall.
“Based on our research, Central Square, Sungai Petani comes with a population catchment of about 400,000, half the size of Wetex. The Johor mall will be our case study as we have succeeded in doubling our average rental in Wetex after our executing our AEIs,” she told StarBiz.
She said, at the same time, Hektar was looking at enhancing Landmark Central by expanding its net lettable area, as the three-year old mall was still relatively new compared with the aging 13-year-old Central Square.
“The next seven months of the year will be gone in a flash as we keep ourselves busy with the AEIs. But, at the same time, we have met a few brokers, and we are continuously looking at potential new malls to add to our portfolio, in line with our RM2bil asset expansion target,” she said.
She said the company had already firmed up refurbishment plans for the two malls, and physical work would be starting soon.
Yesterday, it released results for its first quarter ended March 31, with net profit climbing by 13.7% to RM11.06mil from RM9.725mil, while revenue expanded by 23% to RM30.07mil from RM24.45mil previously.
The improved performance was due to the addition of the two new Kedah malls that the company had acquired end-September last year. However, its net income per unit had dropped by 9.2% due to the enlarged number of units issued to fund the acquisition.
In a statement, Hektar chief executive officer Datuk Jaafar Abdul Hamid said the AEIs would include interior refurbishment and repainting works, upgrading of equipments and toilets, addition of mother's room for shoppers' convenience, re-flooring and lighting improvement.
It would also entail a remix of tenants and also re-zoning activities to increase its shopper traffic and improve the mall's visibility.
Source : The Star
Date : 8 May 2013
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