Starhill Global REIT's property in Malaysia, Lot 10. (Photo: Starhill Global REIT)Starhill Global REIT's property in Malaysia, Lot 10. (Photo: Starhill Global REIT)

Singapore-listed retail and office REIT, Starhill Global REIT (SGX:P40U), announced on 15 March that it has extended the master tenancy agreements of Malaysian properties Starhill Gallery and Lot 10 for a third three-year term commencing 28 June 2016.

The agreements were extended as the master tenant, Katagreen Development Sdn Bhd, has exercised the call option under the existing master tenancy agreements. Katagreen is a wholly-owned subsidiary of Malaysian builder YTL Corporation Berhad, sponsor of Starhill Global REIT.

Total annual rent for the three-year term is MYR84.4 million (SGD28 million), an increase of approximately 6.67% above the annual rent in the previous three-year term. The rent payment for the period is guaranteed by YTL Corporation Berhad.

Commenting on the lease extension, Tan Sri Dato’ Francis Yeoh, non-executive chairman of YTL Starhill Global, opined that the completion of the MRT Sungai Buloh-Kajang Line will bring fresh traffic to the city centre.

“Lot 10 Property, which is situated directly opposite the new Bukit Bintang Central Station, and Starhill Gallery just a few blocks away, are well positioned to benefit from the new traffic”, he added.

Units of Starhill Global REIT finished the trading day 1.3% higher from its previous close on the Singapore Exchange to end at SGD0.765.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.