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 52 MANAGEMENT DISCUSSION AND ANALYSIS F&B NON-RESTAURANT SEGMENT - MALAYSIAN COLLEGE OF HOSPITALITY & MANAGEMENT OVERVIEW OF PROPERTY The property is a 4-storey building known as Malaysian College of Hospitality & Management (MCHM) located in Bandar Dato’ Onn, a self-contained, residential township located 12 kilometres from Johor Bahru. The 597-hectare (1,474 acre) Bandar Dato’ Onn will be home to more than 90,000 residents across 19 neighbourhoods upon expected completion in 2025. The building has a 100% occupancy rate as at 31 December 2021. RENTAL TERM MCHM is currently rented by two tenants. The tenancies for MCHM are for a term of 3 years subject to a compulsory renewal for a further 2 terms of 3 years each per term. MAJOR ASSET ENHANCEMENT INITIATIVE Given that the building is in good condition, no major expansion, renovation or asset enhancement initiatives are planned for the near future. Furthermore, there is no requirement from the existing tenants to expand their operations. CHALLENGES AND PROSPECTS The education market segment has remained resilient throughout the ongoing pandemic outbreak. Accordingly, MCHM being the Fund’s sole college property is expected to continue to provide stable earnings deriving from lease arrangement with KPJ Group’s education arm. Malaysian College of Hospitality & Management
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