AL-SALAM REIT ANNUAL REPORT 2020

45 ANNUAL REPORT 2020 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONAL REVIEW (ASSET PERFORMANCE) Retail Segment - Mydin Gong Badak OVERVIEW OF PROPERTY Mydin Hypermart Gong Badak is a double storey hypermart with business activity in retailing and wholesaling. The mall comprises conventional retail lots including F&B lots, promotion lots, kiosks, push carts as well as ancillary lots, bazaar lots and food court. Unlike traditional warehouse type hypermarts, Mydin Hypermart Gong Badak is constructed as a modern shopping mall that provides a more leisure-like ambience. The strategic location of the hypermart along the eastern side of Jalan Tengku Ampuan Intan Zahrah, one of the main development thoroughfares of Kuala Terengganu town is a main attraction to locals. As at 31 December 2021, Mydin Hypermart Gong Badak continues to have a 100% tenancy occupancy rate. Existing Use Hypermart GFA (sq ft) 589,232 NLA (sq ft) 253,752 Number of Car Park Bays 805 Market Value RM164 million Number of Tenancies 1 LEASE TERM As stipulated in the lease agreement dated 26 September 2018, the lease will be for a term of thirty years ending on 20 September 2048 with an option to renew which the length will be mutually agreed between Al-Salām REIT and the lessee. MAJOR ASSET ENHANCEMENT INITIATIVE The property are on a triple net lease arrangement and therefore, no major asset enhancement initiative was undertaken in FY2020. The Fund will continue to enhance the relationships with the tenants and proactively attend to tenants’ needs and requirements.