Investor Info


Announcements

 

Revaluation of Subang Parade, Mahkota Parade and Wetex Parade

Published : 13 Jan 2009
Announced : 13 Jan 2009

General Announcement
Reference No CC-090113-33869

Company Name
:
HEKTAR REAL ESTATE INVESTMENT TRUST
Stock Name
:
HEKTAR
Date Announced
:
13/01/2009


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 ("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 three-storey 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 clause 10.05 and 10.06 of the amended Securities Commission ("SC")'s Guidelines on Real Estate Investment Trust ("REIT Guidelines"), effective 21 August 2008, the Revaluation must be conducted by an independent valuer duly appointed by the trustee who will ensure that the valuer meets the criteria stipulated under the SC's Guidelines on Asset Valuation.

 

 

3. REVALUATION SURPLUS

 

 

The details of the revaluation surplus are set out below.

 

 

 

Name of Property

Unaudited net Book Value as at 30 September 2008

 

RM

Open Market

 

Value

 

 

RM

 

Revaluation Surplus

 

RM

Subang Parade

313,788,800

331,400,000

17,611,200

Mahkota Parade

248,000,000

252,000,000

4,000,000

Wetex Parade

119,945,678

130,000,000

10,054,322

Total

681,734,478

713,400,000

31,665,522

 

 

4. EFFECTS ON THE NET ASSET VALUE

 

 

The total revaluation of Subang Parade, Mahkota Parade and Wetex Parade represents a surplus of approximately 4.6% over the unaudited net book value of RM681,734,478 as at 30 September 2008 (before revaluation).

 

 

Based on the unaudited results as at 30 September 2008, the net asset value per unit of RM1.1846 will increase to RM1.2836 upon incorporation of the revaluation surplus of RM31,665,522 or equivalent to 9.89 sen per unit.

 

 

 

5. NAME OF VALUER

 

 

The valuations of Subang Parade, Mahkota Parade and Wetex Parade were carried out by independent professional valuers, Messrs. Henry Butcher Malaysia Sdn Bhd, Henry Butcher Malaysia (Malacca) Sdn Bhd and Henry Butcher Malaysia (Muar) Sdn Bhd respectively.

 

 

 

6. DATES OF VALUATION

 

The valuations for Subang Parade, Mahkota Parade and Wetex Parade are dated 30 November 2008.

 

 


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 13 January 2009.