Al-Salam REIT's property in Johor Bahru, KOMTAR JBCC. (Photo: Al-Salam REIT)

Malaysia-listed Al-Salam REIT announced on 3 October that it has entered into a conditional sale and purchase agreement with Mydin Wholesale Cash and Carry for the acquisition of Mydin Hypermarket Gong Badak.

The property, a double storey hypermarket with a mezzanine level and 796 car park bays, is being acquired for a total cash consideration of MYR155.0 million.

The property is approximately three years old, is about 95% occupied, and features approximately 245,000 square feet of net lettable area.

Upon acquisition, Mydin Hypermarket Gong Badak will be leased back to Mydin Mohamed Holdings for a period of 30 years on a triple net lease agreement, said Al-Salam REIT.

The REIT is also entitled to exercise a rental increment of 5% every two years throughout the lease term.

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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.