Announcement
Hektar Real Estate Investment Trust ("Hektar REIT") -revaluation Of Subang parade And Mahkota Parade
09 January 2008
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
(ii) Name of Property : Mahkota Parade
Address : No.1, Jalan Merdeka, 75000 Melaka
2. RATIONALE FOR REVALUATION
The Revaluation was conducted to determine the current market values of Subang Parade and Mahkota 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 11.02 (5) of the Securities Commission ("SC")'s Guidelines on Real Estate Investment Trust ("REIT Guidelines"), Guidance Note 5, released on 8 February 2007, the Revaluation must be conducted by an independent valuer and in accordance with the Malaysian Valuation Standards. A copy of the valuation report must be submitted to the SC, together with the lodgement of annual report of the fund as required pursuant to sub-section 107(1)(a)(i) of the SC Act 1993 and sub-clause 13.01(2) of the REIT Guidelines.
3. REVALUATION SURPLUS
The details of the revaluation surplus are set out below.
4. EFFECTS ON THE NET ASSET VALUE
The total revaluation of Subang Parade and Mahkota Parade represents a surplus of approximately 9% over the unaudited net book value of RM515,447,553 as at 30 September 2007 (before revaluation).
Based on the unaudited results as at 30 September 2007, the net asset value per unit of RM1.0429 will increase to RM1.205 upon incorporation of the revaluation surplus of RM43,952,447 or equivalent to 13.7 sen per unit.
5. NAME OF VALUER
The valuations of Subang Parade and Mahkota Parade were carried out by independent professional valuers, Messrs. Henry Butcher Malaysia Sdn Bhd and Henry Butcher Malaysia (Malacca) Sdn Bhd respectively.
6. DATES OF VALUATION
The date of valuation of both Subang Parade and Mahkota Parade is 30 November 2007.
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 A-2-4, 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.
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 2 basement levels. The commercial/retail complex comprises 3 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.
Petaling, Selangor
(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
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 4 floors of shopping/commercial area on the basement, ground, second and third floors.
(hereinafter referred to as "Revaluation").
2. RATIONALE FOR REVALUATION
The Revaluation was conducted to determine the current market values of Subang Parade and Mahkota 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 11.02 (5) of the Securities Commission ("SC")'s Guidelines on Real Estate Investment Trust ("REIT Guidelines"), Guidance Note 5, released on 8 February 2007, the Revaluation must be conducted by an independent valuer and in accordance with the Malaysian Valuation Standards. A copy of the valuation report must be submitted to the SC, together with the lodgement of annual report of the fund as required pursuant to sub-section 107(1)(a)(i) of the SC Act 1993 and sub-clause 13.01(2) of the REIT Guidelines.
3. REVALUATION SURPLUS
The details of the revaluation surplus are set out below.
| Name of Property | Unaudited net book value as at 30 September 2007 RM |
Open market value RM |
Revaluation Surplus RM RM |
| Subang Parade | 280,525,191 |
311,400,000 |
30,874,809 |
| Mahkota Parade | 234,922,362 |
248,000,000 |
13,077,638 |
| Total | 515,447,553 |
559,400,000 |
43,952,447 |
4. EFFECTS ON THE NET ASSET VALUE
The total revaluation of Subang Parade and Mahkota Parade represents a surplus of approximately 9% over the unaudited net book value of RM515,447,553 as at 30 September 2007 (before revaluation).
Based on the unaudited results as at 30 September 2007, the net asset value per unit of RM1.0429 will increase to RM1.205 upon incorporation of the revaluation surplus of RM43,952,447 or equivalent to 13.7 sen per unit.
5. NAME OF VALUER
The valuations of Subang Parade and Mahkota Parade were carried out by independent professional valuers, Messrs. Henry Butcher Malaysia Sdn Bhd and Henry Butcher Malaysia (Malacca) Sdn Bhd respectively.
6. DATES OF VALUATION
The date of valuation of both Subang Parade and Mahkota Parade is 30 November 2007.
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 A-2-4, 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 9 January 2008.