AL-SALAM REIT ANNUAL REPORT 2018

AL-SALĀM REIT ANNUAL REPORT 2018 40 Operational Review Office Segment Menara Komtar Overview Of Property Adouble storey hypermarketwithbusiness activity in retailing and wholesaling. The mall comprises of the conventional retail lots including food and beverage (F&B) lots, promotion lots, kiosks, push carts, and other an ancillary lot, bazaar lot and food court. Unlike traditional warehouse type of hypermarket, the hypermart is constructed as the modern shopping mall that provide leisure ambience. The strategic location of the hypermarket along the eastern side of Jalan Tengku Ampuan Intan Zahrah, one of the main development thoroughfares of Kuala Terengganu town is expected to be the main attraction to the locals. TENANT PROFILE The table below sets out a summary on Mydin Gong Badak as at 31 December 2018. Operational Review Retail Segment Mydin Hypermart Gong Badak Existing Use Community Hypermarket GFA 582,332 sq ft NLA 245,257 sq ft Number of Car Park Bays 805 Market Value RM158,000,000 Occupancy Rate 96% RENTAL RENEWAL As stipulated in the lease agreement dated 26 September 2018, the lease will be for a term of thirty years with an option to renew which the length will be mutually agreed between Al-Salām REIT and the lessee. Major Asset Enhancement Initiative The properties are on a triple net lease arrangement and there was no major asset enhancement initiative undertaken for year 2018. The Fund will continue to enhance the relationships with the tenants and proactively attend tenant’s need and requirement.