AL-SALAM REIT ANNUAL REPORT 2019

38 ANNUAL REPORT 2019 Retail Mydin Gong Badak OPERATIONAL REVIEW OVERVIEW OF PROPERTY A double storey hypermarket with business activity in retailing and wholesaling. The mall comprises of the conventional retail lots including 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. 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 2019. The Fund will continue to enhance the relationships with the tenants and proactively attend tenant’s need and requirement. Existing Use Community Hypermarket GFA (sq.ft) 589,232 NLA (sq.ft ) 253,752 Number of Car Park Bays 805 bays Market Value RM 161 million Number of Tenancies 1 Ocupancy vale 100% AL-SALĀM REIT •