Hektar REIT has entered into a conditional sale and purchase agreement with KYS College Sdn Bhd for the proposed acquisition of a single, 1 ½, 2 and 3-storey buildings including administration, academic, residential, and student facilities in Ayer Keroh Melaka at the purchase consideration of RM150 million.

As part of the deal, KYS will lease the property from Hektar for a period of 30 years. In return for granting the Lease, the Vendor (as the lessor) shall be entitled to a guaranteed rent of RM8.1 million for the first year of the Term, followed by a 2.5% yearly rental escalation.

Established in 1995, KYS College is a fully residential and co-educational private school that offers secondary school education under Malaysia’s New National School Curriculum (KBSM) for students from Form 1 to Form 5. KYS College is situated in the state of Melaka Negeri Bersejarah and within a locality known as Ayer Keroh. It is situated on the left side of Leboh Ayer Keroh travelling from Ayer Keroh towards Melaka city centre.

Hektar said the proposed acquisition and lease is in line with the group’s key investment objective of the Manager to continuously pursue assets that are income-producing and are able to contribute to the longterm growth.