A L - S A L Ā M R E I T A N N U A L R E P O R T 2 0 2 1 46 MANAGEMENT DISCUSSION AND ANALYSIS RETAIL SEGMENT - MYDIN HYPERMART GONG BADAK OVERVIEW OF PROPERTY Mydin Hypermart Gong Badak is a double-storey hypermart housing commercial activities within the robust retail and wholesaling market segments. The mall comprises conventional retail lots, including F&B lots, promotion lots, kiosks, pushcarts, ancillary lots, bazaar lots, and a 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 the main attraction to locals. As at 31 December 2021, Mydin Hypermart Gong Badak continues to have a 100% tenancy occupancy rate. Existing use Community Hypermarket GFA (sq ft) 446,381 NLA (sq ft) 253,688 Number of Car Park Bays 805 Market Value RM165 million Occupancy Rate 100% 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. The period of the renewed lease will be mutually agreed upon by Al-Salām REIT and the lessee. MAJOR ASSET ENHANCEMENT INITIATIVE The property is under a triple net lease arrangement and therefore, no major enhancement initiatives were undertaken in FY2021. The Fund will continue to enhance the relationships with the tenants and proactively attend to tenants’ needs and requirements. CHALLENGES AND PROSPECTS As the asset is under a triple net lease arrangement with Mydin Hypermarket being well positioned as a resilient community hypermarket, the Manager expects Mydin Hypermart Gong Badak to sustain its contribution to Al-Salām REIT’s core income. Mydin Hypermart Gong Badak
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