On behalf of the Board of Directors of Hektar Asset Management Sdn Bhd ("Board"), being the management company of Hektar REIT ("Manager"), UOB Kay Hian Securities (M) Sdn Bhd ("UOBKH") wishes to announce the following:

i. MTrustee Berhad, being the trustee of Hektar REIT ("Trustee"), had on 11 September 2023 entered into a conditional sale and purchase agreement ("SPA") with KYS College Sdn Bhd ("Vendor") for the proposed acquisition of a single, 1 ½, 2 and 3-storey buildings which are categorised into administration, academic, residential and student facilities forming part of the fully residential and co-educational private school known as 'Kolej Yayasan Saad' located at Ayer Keroh, Melaka and erected on part of the leasehold land held under PN 62892, Lot 9808, Mukim of Durian Tunggal, District of Alor Gajah, State of Melaka ("Subject Property") at the purchase consideration of RM150 million ("Purchase Consideration").

The Vendor had on 22 June 2023 leased the Subject Property to KYSA Education Sdn Bhd (being the existing operator of KYS College) ("Lessee") for a period of 30 years and pursuant to the terms of the SPA, the said lease will be novated to the Trustee upon the completion of the acquisition of the Subject Property by way of a deed of novation to be entered between the Vendor, Trustee and the Lessee ("Lease").

The above are collectively referred to as the "Proposed Acquisition and Lease"; and

ii. in order to partially finance the Purchase Consideration, the Board also proposes to undertake a placement of up to 99,757,594 new units in Hektar REIT ("Unit(s)") ("Placement Unit(s)"), representing up to 20% of the existing issued units ("Proposed Placement").

Further details on the Proposals are set out in the attachment enclosed.

This announcement is dated 12 September 2023.