Hektar Real Estate

What Hektar Real Estate does

Hektar Real Estate Investment Trust (Hektar REIT), listed on Bursa Malaysia under stock code 5121, is Malaysia's first retail-focused Real Estate Investment Trust, established and listed in 2007. The trust is externally managed by Hektar Asset Management Sdn Bhd, with MTrustee Berhad serving as trustee, and it currently operates a portfolio of seven assets valued at approximately RM1.39 billion across Peninsular Malaysia: six community-focused shopping centres (Subang Parade, Mahkota Parade, Wetex Parade, Central Square, Kulim Central, Segamat Central) totalling 2.0 million square feet of net lettable retail space, an integrated 156-room Classic Hotel within the Wetex Parade complex in Muar, and Kolej Yayasan Saad, a private fully residential school in Ayer Keroh, Melaka acquired in 2024 for RM148.5 million as its first non-retail asset.

Name

Hektar Real Estate

Legal name

Hektar Real Estate Investment Trust

Website

https://hektarreit.com

Company type

Public

Founded year

2007

Operating status

Operating

Headcount range

251–500 employees

Short description

Hektar REIT is Malaysia's first retail-focused Real Estate Investment Trust, listed on Bursa Malaysia (5121), operating six community shopping centres, a hotel, and an education asset across Peninsular Malaysia, serving retail tenants and shoppers.

Ownership category

akta.pro rank

Product category

Retail Real Estate Investment Trust (Shopping Centre REIT)

NAICS

Lessors of Real Estate (5311), Real Estate Property Managers (53131), Funds, Trusts, and Other Financial Vehicles (525), Real Estate and Rental and Leasing (53)

SIC

Real Estate Investment Trusts (6798), Real Estate (6500), Real Estate Agents & Managers (For Others) (6531)

akta.pro primary industry

REITs & Listed Real Estate Securities (FSAAAKAD)

akta.pro secondary industries

Core Real Estate (Stabilized/Core-Plus) (FSAAAKAA), Hospitality (Hotels & Resorts) Asset Management (BPAJAMAE)

Keywords

• Retail REIT operations
• Shopping centre management
• Property asset leasing
• Real estate investment trust
• Commercial property portfolio

Headquarters

HQ city

Kuala Lumpur

HQ country

Malaysia

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Marketing or Sales, Others

Revenue model

1. Rental Income from Retail Tenants: Primary revenue stream from base rent paid by retail tenants across shopping centers. Rental income includes fixed base rent plus turnover rent provisions (present in 89% of tenancy contracts) and step-up rent provisions (55% of contracts). Turnover rent is calculated as a proportion of tenant's monthly or yearly turnover when it exceeds base rent.
2. Hotel Rental Income: Rental income from Classic Hotel within Wetex Parade property, operating 156 rooms with average room rate of RM162 in 2024. Hotel occupancy was 36% in 2024.
3. Education Asset Rental: Rental income from Kolej Yayasan Saad private education premise, generating RM8.3 million per annum with 100% occupancy.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels6 records

Core offering

Hektar REIT owns, leases and manages a portfolio of community-focused retail shopping centres, an integrated hotel and an education asset across Peninsular Malaysia, collecting rental income from retail tenants under base-rent-plus-turnover-rent contracts and distributing the proceeds semi-annually to unitholders. The trust's core offering is the provision of prime, catchment-protected retail space to anchor and specialty tenants together with active asset management (tenant remixing and repositioning) that sustains occupancy and rental reversion.

Product overview

Hektar REIT is Malaysia's first retail-focused Real Estate Investment Trust, managed by Hektar Asset Management Sdn Bhd. The portfolio consists of six well-established community-focused shopping centres across Peninsular Malaysia (Subang Parade, Mahkota Parade, Wetex Parade, Central Square, Kulim Central, and Segamat Central), one integrated hotel component (Classic Hotel at Wetex Parade), and one educational asset (Kolej Yayasan Saad). The portfolio comprises approximately 2.0 million square feet of retail space and provides geographical diversification serving CBDs, suburbs, growing towns and emerging towns.

Differentiator

Problem solved

Functional benefit

Products and services

• Subang Parade Regional community shopping centre located in Subang Jaya, Selangor, comprising 521,680 sq ft of net lettable retail space leased to 86 tenants including anchor Parkson Grand, Village Grocer, Best Denki and GSC, with 4.9 million annual visitors as at 31 December 2024.
• Mahkota Parade Regional community shopping centre located in Bandar Melaka, Melaka, comprising approximately 520,968 sq ft of retail space serving the commercial and tourist catchment of Melaka town.
• Wetex Parade Integrated retail and hotel development located in Muar, Johor, comprising 170,463 sq ft of department-store-anchored retail space (with The Store, McDonald's, F&B and cinema tenants) and the adjacent 156-room Classic Hotel.
• Central Square Community shopping centre located in Sungai Petani, Kedah, comprising 310,902 sq ft of retail space completed in 1997 and serving as a recognisable landmark destination in the town.
• Kulim Central Neighbourhood shopping centre located in Kulim, Kedah, comprising 294,872 sq ft of retail space; originally acquired as Landmark Central in 2012 and rebranded to Kulim Central in 2017 following refurbishment.
• Segamat Central Purpose-built community shopping centre in Segamat, Johor, comprising 223,017 sq ft of retail space and the only purpose-built mall in Segamat, anchored by MM Cineplexes (the largest cinema in the area).
• Classic Hotel at Wetex Parade Hotel component of the Wetex Parade development in Muar, Johor, comprising 156 newly renovated rooms across 125,931 sq ft of gross floor area and including the largest ballroom facilities in Muar (average room rate RM162 in 2024, 36% occupancy).
• Kolej Yayasan Saad Premier private fully residential education premise located in Ayer Keroh, Melaka, comprising 396,874 sq ft of gross floor area on 86 acres of land; leased to a residential school operator at RM8.3 million per annum on a 100% occupancy basis.

Quantifiable outcome

• 11 consecutive years of uninterrupted distribution to unitholders
• +3 more outcomes

Named customers12 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered minor and core.

• Frasers Centrepoint LimitedminorStrategic or Co-development Partner · 1 January 2007Previously acquired 40% interest in Hektar Asset Management Sdn Bhd, the manager of Hektar REIT, as announced in 2007. This represented a strategic partnership for the manager ownership structure.
• MTrustee BerhadcoreOthersServes as the Trustee of Hektar REIT, holding trust assets on behalf of unitholders and ensuring compliance with the trust deed and regulatory requirements.

Scale indicators8 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• Scentre Group: Australia and New Zealand's leading retail REIT (Westfield malls). Broad incumbent with similar community/regional mall strategy, large tenant partnerships and active asset repositioning playbook relevant to Hektar's suburban mall focus.
• Link REIT: Hong Kong's largest REIT and Asia's premier retail-focused REIT. Broad incumbent comparable on retail REIT strategy, capital structure and yield-oriented unit-holder base, though operating at materially larger scale and in a different geography.
• CapitaLand Integrated Commercial Trust: Singapore-listed REIT with retail exposure (Bugis Junction, Funan, Plaza Singapura) alongside office. Broad incumbent in the Asia retail REIT space with overlapping tenant profiles and similar active asset management approach.
• Mapletree Pan Asia Commercial Trust: Singapore-listed diversified REIT with pan-Asian retail and office exposure. Broad incumbent providing a benchmark for Asian retail REIT capital management, tenant strategy and yield positioning.

Direct peers

• IGB REIT: Malaysian REIT owning Mid Valley Megamall, The Gardens Mall and Southkey Megamall. Direct peer because it is a Bursa Malaysia-listed retail REIT with similar suburban/regional mall exposure and a focus on tenant mix optimisation.
• Sunway REIT: Malaysian diversified REIT with significant retail exposure across Sunway Pyramid, Sunway Carnival and other malls. Direct peer because both are Malaysian listed REITs operating community/regional shopping centres with similar tenant remixing strategies.
• CapitaLand Malaysia Trust: Malaysian retail and office REIT formerly known as CapitaRetail Malaysia Trust. Direct peer as it operates shopping malls (e.g. Gurney Plaza, East Coast Mall) in similar Malaysian catchments with comparable tenant profiles.
• Frasers Centrepoint Trust: Singapore-listed retail REIT focused on suburban malls. Direct peer and particularly relevant because Frasers Centrepoint Limited previously held a 40% interest in Hektar Asset Management Sdn Bhd, evidencing shared DNA in suburban retail mall operations.
• KLCC Stapled Securities: Bursa Malaysia-listed stapled securities encompassing KLCC REIT and KLCC Property Holdings, which owns Suria KLCC. Direct peer as a Malaysian retail REIT with both prime and suburban mall exposure and a similar distribution-yield investment proposition.
• Pavilion REIT: Malaysia retail-focused REIT anchored by Pavilion Kuala Lumpur and Bukit Bintang City Centre. Direct peer as a Bursa Malaysia-listed retail REIT competing for retail tenant relationships and investor capital in the same Malaysian market.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat3 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/hektar-property-services-sdn-bhd

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Hektar Real Estate