KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar REIT) is spending RM20 million for the makeover of its Landmark Central shopping centre in Kulim, Kedah.
Datuk Jaafar Abdul Hamid, chairman and chief executive officer of Hektar REIT management company Hektar Asset Management Sdn Bhd, said the move is in a bid to optimise its exponential growth potential.
This also forms part of the company's strategy to increase the overall net lettable areas (NLA) of malls within its portfolio, which currently stands at 1.8 million sq ft, he said.
Since the acquisition in 2012, Landmark Central has emerged as the most promising among the company’s five malls in terms of upward rental trajectory.
Jaafar said the asset enhancement initiative will eventually increase the NLA of the shopping mall by about 20,000 sq ft, which will offer additional footprint for retailers who wish to be part of Landmark Central’s growing number of tenants.
"We intend to also improve and refresh the tenancy mix in Landmark Central to provide not just a better experience for our customers, but to also cultivate a harmonious environment for our retailers to ensure that we attract the desired shoppers," he told after concluding Hektar REIT’s fourth annual general meeting here today.
"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.
With retailers such as Giant Superstore, The Store, MBO Cinemas and Ole Ole Superbowl, Landmark Central is able to capitalise on its unique selling proposition as an all-encompassing neighbourhood mall.
As at December 31 2015, Landmark Central has shown a growth of 2.4 per cent in its occupancy rate resulting in a high figure of 99.3 per cent as compared to 96.9 per cent in 2012.