Investor Info


Announcements

 

Revaluation of Subang Parade, Mahkota Parade and Wetex Parade

Published : 17 Feb 2011
Announced : 17 Feb 2011

Type
:
Announcement
Subject
:
OTHERS

Description
:
HEKTAR REAL ESTATE INVESTMENT TRUST ("Hektar REIT")
- Revaluation of Subang Parade, Mahkota Parade and Watex Parade


Announcement Details/Table Section :
Contents :
1. INTRODUCTION
Hektar Asset Management Sdn Bhd (“HAMSB”), the Manager of Hektar REIT, hereby
announces that it has carried out a revaluation exercise on the following properties:
(i) Name of Property : Subang Parade
Address : No.5 Jalan SS 16/1, 47500 Subang Jaya Selangor
Geran 55365/Lot 14193, Bandar Subang Jaya,
District of Petaling, Selangor
Description : A freehold land measuring approximately 475,021.80
square feet (10.905 acres) in area together with a
three-storey shopping complex with two basement
levels. The commercial/retail complex comprises
three floors of shopping/commercial area on the
ground, second and third floors, one level of
basement car parks and another level of basement
service tunnel.

(ii) Name of Property : Mahkota Parade
Address : No.1, Jalan Merdeka, 75000 Melaka
PN 28957/Lot 1337, Kawasan Bandar XLII, District
of Melaka Tengah, Melaka
Description : A leasehold land measuring approximately 570,815
square feet (13.1 acres) in area together with a threestorey shopping complex with one level of basement
car park. The commercial/retail complex comprises
four floors of shopping/commercial area on the
basement, ground, second and third floors.
(iii). Name of Property : Wetex Parade
Address : 69, Jalan Ali, Off Jalan Sulaiman, 84000 Muar, Johor
PTB 10586, HS(D) 19633, Bandar Maharani, District
of Muar, Johor Description : A freehold land measuring approximately 52,829
square feet (1.2128 acres) in area with a five-storey
shopping complex podium known as “Wetex Parade”
and a 3 star category ten-storey hotel tower with 156
rooms known as “Hotel Classic” and one level of
basement car park
(hereinafter referred to as “Revaluation”).
2. RATIONALE FOR REVALUATION
The Revaluation was conducted to determine the current market values of Subang Parade,
Mahkota Parade and Wetex Parade for accounting purposes as per Financial Reporting
Standard (“FRS”) 140. Based on the fair value method from FRS 140, the fair value of the
investment property shall reflect market conditions at the balance sheet date. This
necessitates the revaluation of investment properties on an annual basis.
Since it has adopted the fair value method from FRS 140, Hektar REIT will undertake an
annual revaluation of all investment properties under its portfolio.
Pursuant to the amended Clause 10.03 of the Securities Commission (“SC”)’s revised
Guidelines on Real Estate Investment Trust (“REIT Guidelines”) which was released on 21
August 2008, the Revaluation must be conducted by an independent valuer and in
accordance with the Malaysian Valuation Standards or other applicable valuation standards.
A copy of the Revaluation report must be submitted to the SC, together with the annual
report of the fund as required pursuant to clause 10.10(c) (ii) of the REIT Guidelines.
3. REVALUATION SURPLUS
The details of the revaluation surplus are set out below.
Name of
Property
Audited
book/Market
value as at
1 Jan 2010
RM
(‘000)
Acquisition/
(Divestment) /
Capital
Expenditure
during 2010
RM
(’000)
Unaudited
book value as
at 31 Dec 2010
RM
(’000)
Latest market
valuation
RM
(’000)
Revaluation
Surplus/(Deficit)
RM
(’000)
Subang Parade 343,000 (3,867) 339,133 347,000 7,867
Mahkota Parade 257,000 29,101 286,101 283,000 (3,101)
Wetex Parade 120,000 5,755 125,755 122,000 (3,755)
Total 720,000 30,989 750,989 752,000 1,0114. EFFECTS ON THE NET ASSET VALUE
The total revaluation of Subang Parade, Mahkota Parade and Wetex Parade has no material
impact on Hektar REIT’s Net Asset Value.
5. NAME OF VALUER
The valuations of Subang Parade, Mahkota Parade and Wetex Parade were carried out by
independent professional valuers, Messrs. Khong & Jaafar Sdn Bhd.
6. DATES OF VALUATION
The cut off date for the Revaluation is 31 October 2010 and the valuation reports are dated
3 January 2011.
7. DOCUMENTS AVAILABLE FOR INSPECTION
The valuation reports in relation to the Revaluation are available for inspection at the
management office of HAMSB at Block C-0-5, Plaza Damas, No. 60, Jalan Sri Hartamas 1,
Sri Hartamas 50480 Kuala Lumpur during normal office hours from Monday to Friday
(except public holidays) for a period of 3 months from the date of this announcement.
This announcement is dated 17 February 2011.
Attachment : Adobe PDF fileannouncement revaluation surplus - 17 jan 11.pdf