Investor Info


Announcements

 

Revaluation of Subang Parade, Mahkota Parade and Wetex Parade

Published : 02 Feb 2010
Announced : 02 Feb 2010

Type : Announcement
Subject :
Hektar Real Estate Investment Trust ("Hektar REIT")
-Revaluation of Subang Parade, Mahkota Parade and Wetex Parade

Contents :
Revaluation of Subang Parade, Mahkota Parade and Wetex Parade

Announcement Details :

Contents :

1. INTRODUCTION

Hektar Asset Management Sdn Bhd ("Hektar AM"), 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 3storey shopping complex with 2 basement levels. The commercial/retail complex comprises 3 floors of shopping/commercial area on the ground, second and third floors, 1 level of basement car park 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 3 storey shopping complex with 1 level of basement car park. The commercial/retail complex comprises 4 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 59,731 square feet (1.37 acres) in area with a 5 storey shopping complex podium known as "Wetex Parade" and a 10 storey hotel block complete with a 1 level 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 value as at 31 December 2008

RM

Acquisition/ Capital Expenditure during 2009

RM

Unaudited book value as at 31 December 2009

RM

Latest market valuation


RM

Revaluation Surplus/(Deficit)

RM

Subang Parade

331,400,000

4,582,963

335,982,963

343,000,000

7,017,037

Mahkota Parade

252,000,000

780,569

252,780,569

257,000,000

4,219,431

Wetex Parade

130,000,000

835,949

130,835,949

120,000,000

(10,835,949)

Total

713,400,000

6,199,481

719,599,481

720,000,000

400,519

 

 

4. 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 Revaluation was carried out by an independent professional valuer, Messrs. Khong & Jaafar Sdn. Bhd..

 

 

 

6. DATES OF VALUATION

The cut off date for the Revaluation is 31 October 2009 and the valuation reports are dated 29 December 2009.

 

 

7. DOCUMENTS AVAILABLE FOR INSPECTION

 

The valuation reports in relation to the Revaluation are available for inspection at the management office of Hektar AM 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 2 February 2010.