AL-SALAM REIT ANNUAL REPORT 2019

AL-SALĀM REIT • 151 ANNUAL REPORT 2019 For The Financial Year Ended 31 December 2019 (Cont’d) 26. SIGNIFICANT EVENTS On 30 November 2017, the Fund had entered into 3 conditional sale and purchase agreements with Kentucky Fried Chicken (Malaysia) Sendirian Berhad, KFC (Peninsular Malaysia) Sdn Bhd, KFC (Sabah) Sdn Bhd and SPM Restaurants Sdn Bhd for the acquisition of 22 properties located across Malaysia for a total cash consideration of RM115.0 million to be funded via proceeds from the borrowings. In view of weak market sentiments and the expiry of the extended conditional period of the Sales and Purchase Agreement (“SPA”) on 28 February 2019, the Board had resolved not to implement the Proposed Placement and to vary the source of funding for the Purchase Consideration to entirely borrowings (“Variation”). As a result of the Variation, state authorities’ consents are required to be obtained to charge the 5 properties under SPA 3 in favour of the Trustee’s financier. For avoidance of doubt, state authorities’ consents to charge are not required for the properties under SPA1 and SPA 2. In view of the above, the parties to SPA 3 have amended one of the Conditions Precedent of SPA 3 and extended the conditional period of SPA 3. As SPA 1 and SPA 2 do not require state authorities’ consent, the Trustee and the Vendors have agreed to waive the inter-conditionality of the SPAs to allow SPA 1 and SPA 2 to become unconditional on or before the expiry of the extended conditional period of the SPAs. On 28 August 2019, Al-Salām REIT requesting for a further extension period of 6 months from 28 August 2019 to 20 February 2020 to fulfill the said condition precedent. The acquisition of the 17 properties under SPA 1 and SPA 2 has been completed on 19 March 2019. As a result, an additional borrowings has been taken up with CIMB amounted to RM87.03 million, as disclosed under Note 17. 27. COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to current year’s presentation. As previously As stated Reclassification reclassed The Group RM RM RM Statements of financial position for the year ended 31.12.2018 Trade receivables 4,853,859 3,350,940 8,204,799 Other receivables and prepaid expenses 7,920,284 (131,060) 7,789,224 Amount owing to related companies 3,321,296 (2,497,935) 823,361 Other payables and accrued expenses 10,929,645 721,945 11,651,590 As previously As stated Reclassification reclassed The Fund RM RM RM Statements of financial position for the year ended 31.12.2018 Trade receivables 4,853,859 3,350,940 8,204,799 Other receivables and prepaid expenses 7,833,822 (131,060) 7,702,762 Amount owing to related companies 3,321,296 (2,497,935) 823,361 Other payables and accrued expenses 10,016,463 721,945 10,738,408 Notes To The Financial Statements