Published : 10 Jun 2016
Announced : 10 Jun 2016
|Description||HEKTAR REAL ESTATE INVESTMENT TRUST (HEKTAR REIT) (I) PROPOSED ACQUISITION; (II) PROPOSED RIGHTS ISSUE; (III) PROPOSED ISSUANCE TO MANAGER; (IV) PROPOSED AUTHORITY; AND (V) PROPOSED INCREASE IN FUND SIZE|
On behalf of the Board of Directors of Hektar Asset Management Sdn Bhd (“Manager”), Maybank Investment Bank Berhad wishes to announce that AmTrustee Berhad, being the trustee of Hektar REIT, had on 10 June 2016 entered into a conditional sale and purchase agreement with Tashima Development Sdn Bhd, a wholly-owned subsidiary of EcoFirst Consolidated Bhd which is listed on the Main Market of Bursa Malaysia Securities Berhad, for the proposed acquisition of the Subject Property (as defined in Section 1 of the Announcement) for a cash consideration of RM104.0 million (“Proposed Acquisition”).
In conjunction with the Proposed Acquisition, the Manager proposes to undertake the following:
1. renounceable rights issue of new units in Hektar REIT (“Units”) to the unitholders of Hektar REIT on an entitlement date to be determined later to raise gross proceeds of up to RM75.0 million to part-finance the Proposed Acquisition (“Proposed Rights Issue”); and
2. issuance of new Units to the Manager as part of the Acquisition Fee (as defined in Section 4 of the Announcement) due to the Manager (“Proposed Issuance to Manager”).
The Manager also proposes to seek authority to allot and issue new Units for part payment of the management fee to the Manager in the form of new Units (“Proposed Authority”).
Pursuant to the foregoing, the Manager proposes to increase the existing approved fund size of Hektar REIT to facilitate the increase in the number of Units pursuant to the Proposed Rights Issue, Proposed Issuance to Manager and Proposed Authority (“Proposed Increase in Fund Size”).
Please refer to the attachment for further details.
This Announcement is dated 10 June 2016.