KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) plans to double its asset value to RM2.4 billion with the acquisition of four new retail properties by 2026.
Hektar Asset Management Sdn Bhd executive director and chief executive officer Datuk Hisham Othman said the company is currently in talks with several parties over possible acquisitions.
"Despite the slowdown of the retail market in the last few years, the company is expansionary in terms of portfolio and continue to consider acquisition of potential yield-accretive assets.
"Our target is to acquire at least four new retail properties to double our asset value to RM2.4 billion by 2026 while reducing costs and increasing efficiency.
"It does not really matter in which states we plan to acquire the malls, as long as the location is good and fits our criteria for good return prospect for the malls," he told reporters after Hektar REIT’s annual general meeting here today.
Focusing on neighbour-centric shopping centres, Hektar REIT's portfolio has maintained a high average occupancy ratwe of 95 per cent and achieved one of the highest yields in the industry at 7.4 per cent.
"We expect an exciting and good year ahead for the company as it reaps the benefits after the undergoing several asset enhancement initiatives to add value to our malls.
"Our flagship mall, Subang Parade, achieved a 7.6 per cent increase in footfall, despite bearish consumer sentiment, changing consumer lifestyles and increasing number of malls in Klang Valley.
"At the moment, we have no plans to diversify into other businesses but rather choose to remain in our focus market, which is still retail. That said, it is not something we are discounting to do a few years down the road," he added.
Hektar REIT has allocated RM30 million in capiral expenditure for mall refurbishments as well as increasing nett lettable areas in its bid to attract more tenants.
The reit currently owns 2.0 million square feet of retail space in Selangor, Melaka, Johor and Kedah with assets valued at RM1.2 billion as at September 30, 2017.