Hektar-REIT Acquires 90% Stake in Terramark for RM26mil to Diversify Portfolio

Hektar Real Estate Investment Trust (Hektar-REIT) is acquiring a 90% stake in Terramark Sdn Bhd for RM26mil. The acquisition aims to diversify Hektar-REIT's portfolio into the industrial and renewable energy sectors. Terramark owns a 197.76-acre leasehold agricultural land in Perlis intended for industrial use, which will strengthen Hektar-REIT's presence in high-growth sectors and position it to benefit from Malaysia's renewable energy transition.

Hektar Real Estate Investment Trust (Hektar-REIT) has announced plans to acquire a 90% equity stake in Terramark Sdn Bhd, a company that owns a 197.76-acre leasehold land in Perlis, Malaysia. The acquisition, valued at RM26 million, aims to diversify Hektar-REIT's portfolio into the industrial and renewable energy sectors [1].

The land, previously used as a sugarcane plantation, is located in Chuping and is earmarked for a private solar farm project under the proposed Corporate Renewable Energy Supply Scheme. The acquisition will involve a 25-year triple net master lease arrangement, offering an average yield of 9.55% over the lease term with a built-in 10% rent escalation every three years [1].

The acquisition aligns with Hektar-REIT's strategy to expand its asset base beyond retail properties and enter high-growth sectors. The REIT plans to fund the acquisition using internally generated funds, with completion targeted for the fourth quarter of 2025 [1].

Hektar-REIT's portfolio currently includes several commercial properties such as Subang Parade in Subang Jaya, Mahkota Parade in Melaka, Wetex Parade and Classic Hotel in Muar, Central Square in Sungai Petani, Kulim Central in Kulim, and Segamat Central in Segamat. The acquisition of Terramark's land will strengthen the REIT's presence in industrial and renewable energy sectors, positioning it to benefit from Malaysia's renewable energy transition [1].

In a separate development, Oyster Renewable Energy, an Independent Power Producer (IPP), is targeting 2 GW of green energy capacity by 2030 with an estimated investment of ₹14,000 crore. The company plans to commission 800 MW of renewable energy capacity by June 2026 [2].

References:
[1] https://theedgemalaysia.com/node/760239
[2] https://www.financialexpress.com/business/industry-oyster-renewable-energy-targets-2-gw-green-capacity-by-2030-3891655/