Corporate governance

Earning the trust of our shareholders

Sound principles of corporate governance are critical to earning and retaining the trust of our investors, and to sustaining our foremost commitment to acting with integrity.

Earning the trust of our shareholders

Sound principles of corporate governance are critical to earning and retaining the trust of our investors, and to sustaining our foremost commitment to acting with integrity.

The manager of Hektar Real Estate Investment Trust (“Hektar REIT”), together with the Trustee, is committed to adopting the highest standards of corporate governance. Hektar REIT ensures that its day to day business affairs consider ethical behaviour, accountability, transparency and sustainability in its core practices. Under such commitment, Hektar REIT aims to acquire public trust and investor confidence, which are essential to support the long term growth and sustainability of the organisation.

Hektar REIT

Hektar REIT is Malaysia’s first retail focused REIT listed on the Main Board of Bursa Malaysia Securities Berhad on 4 December 2006. The REIT’s cornerstone investor is Frasers Centrepoint Trust, part of Frasers Property, headquartered in Singapore.

The Manager of Hektar REIT

Hektar REIT is managed by Hektar Asset Management Sdn Bhd (“the Manager / HAMSB”), and was formed with a vision to set strategic directions in managing the REIT’s assets and liabilities for the benefit of the Unitholders and to make recommendations to the Trustee on the acquisition, investments and enhancement of assets under management.

Hektar REIT’s portfolio currently consists of six quality shopping centres, namely Subang Parade in Subang Jaya, Mahkota Parade in Melaka, Wetex Parade in Muar, Central Square in Sungai Petani, Kulim Central in Kulim and Segamat Central in Segamat. Besides shopping centres, Hektar REIT also owns Classic Hotel in Muar, which is adjoined to Wetex Parade. Details of the Hektar REIT’s assets can be found under “Portfolio Performance” of this annual report.

As required by the Capital Markets and Services Act 2007, the Manager holds a valid Capital Markets Services License (“CMSL”) issued by the Securities Commission (“SC”).

Other main functions of the Manager are (but not limited to) as follows:-

  • Developing and implementing business and strategic planning for Hektar REIT;
  • Monitoring and ensuring the compliance with all relevant authorities, legislations, rules and guidelines as well as the Hektar REIT’s trust deeds;
  • Supervising and overseeing the Property Manager on the management and operations of Hektar REIT’s retail malls and hotel;
  • Supervising regulatory filing, ensuring compliance with Capital Markets and Service Act 2007, SC REIT Guidelines, Bursa Malaysia Main Market Listing Requirements (“Listing Requirements”), Trust Deeds and all relevant authority guidelines.

The Trustee

MTrustee Berhad was appointed as the Trustee for Hektar REIT via a Trust Deed executed by the Manager and the Trustee on 5 October 2006 and as amended by two Supplemental Trust Deeds dated 20 March 2012 and 23 November 2016 respectively. The Deed details out the roles, duties, obligations and powers of the Manager and the Trustee. Essentially, the Trustee and the Manager play countervailing roles against each other to ensure that the REIT’s assets and liabilities are managed with efficiency and integrity for the benefit of the Unitholders.

Board Charter & Code of Ethics and Conduct

In addition to the Trust Deed, the Board of the Manager is also governed by the Board Charter, which outlines the principal role of the Board, establishing the functions, responsibilities and powers of the Board and its various Committees. It also sets the policies of the Board to ensure that the principles and practices of good corporate governance are applied in all their dealings for the REIT.

The Code of Ethics and Conduct (“Code”) sets out policies and guidelines relating to the standards and ethics expected of all employees of the Manager. Separately, any specific procedures on the application of policies referred to in the Code will be spelt out in the Company’s policies and procedures manual.

Please click here for the Code of Conduct and Ethics.

The Board Charter is regularly reviewed to incorporate latest statutory developments. Please click here for the Board Charter..

For the Terms of Reference for the Audit Committee, Nomination Committee, Executive Committee, please refer to the Board Charter.

Fit & Proper Policy

The Board of Directors (the “Board”) of the Manager is committed to drive sustainable value for the unitholders of Hektar REIT. The generation of long-term value is anchored on the alignment of interests between Hektar REIT’s unitholders with that of the Manager’s Board and Management.

In understanding the importance of driving objective and meritorious appointments at the leadership level, the Board has set out the Fit and Proper Policy for the Board and Senior Management of the Manager (the “Policy”).

The Policy is an extension of the Manager’s corporate governance framework and serves as a guiding document to ensure Directors and Senior Management possess the necessary traits and qualities required to perform their respective roles.

Please click here for the Fit & Proper Policy.


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