Al-Salam REIT to buy Mydin property

Al-Salam Real Estate Investment Trust (REIT) has entered into a conditional share purchase agreement with Mydin Wholesale Cash and Carry Sdn Bhd to acquire Mydin Hypermarket Gong Badak for RM155 million cash.

In an exchange filing yesterday, Al-Salam REIT noted the hypermarket will be leased to Mydin Mohamed Holdings Bhd for 30 years with a 5% rent increment every two years upon the acquisition completion. Mydin Hypermarket Gong Badak is a double-storey hypermarket building located in Kuala Terengganu, Terengganu.

AmanahRaya Trustees Bhd entered the agreement on behalf of the purchaser.

Al-Salam REIT has yet to receive its board of directors’ approval for the property acquisition and its leaseback, as well as governmental approvals for the acquisition completion.