AL-SALAM REIT ANNUAL REPORT 2020

163 ANNUAL REPORT 2020 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2020 (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 RM115,000,000 to be funded via proceeds from the Proposed Placement and borrowings. In view of weak market sentiments and the expiry of the extended conditional period of the SPAs 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’ consent to charge are not required for the properties under SPA 1 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, Al-Salām REIT 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 August 28, 2019, Al-Salām REIT has requested for a further extension period of 6 months from August 28, 2019 to February 20, 2020 to fulfil the said condition precedent. The acquisition of 17 properties under SPA 1 and SPA 2 was completed on 19 March 2019. As a result, an additional borrowing has been taken up amounting to RM87,026,400. The acquisition of remaining 5 properties under SPA 3 was completed on 17 September 2020 with a drawdown of borrowing amounting to RM30,973,600. 27. COMPARATIVE FIGURES As at 31 December 2019, the Group and the Fund have tenant deposits of RM7,143,850 which were due to be settled within 12 months after reporting period but classified as other payable (non-current). This amount has been reclassified to other payable (current), so as to be consistent with current year's presentation. As previously Re- As stated classification restated RM RM RM Group and Fund At 31 December 2019 Non-current liability Tenant deposit payables 14,326,419 (7,143,850) 7,182,569 Current liability Tenant deposit payables - 7,143,850 7,143,850 28. SIGNIFICANT AND SUBSEQUENT EVENT On 28 February 2020, the Fund made an announcement on Bursa Malaysia to undertake a proposed private placement of up to 116,000,000 representing up to 20% of its total issued units. Subsequently on 13 March 2020, Bursa Securities has approved the listing of and quotation of up to 116,000,000 units of the Fund to be issued pursuant to the proposed private placement to be completed within 6 months from the approval date. On 28 August 2020, as the exercise has yet to complete within 6 months period, Bursa Securities has granted the Fund an extension of time of up to 13 March 2021 to complete the implementation of the proposed private placement.