Al-Aqar Healthcare Real Estate Investment Trust (Al-Aqar REIT) is divesting one of its non-core properties in Bukit Mertajam, Penang, for RM12 million — a figure that falls short of both its market valuation and the trust’s original investment cost.
According to its filing with Bursa Malaysia, the REIT has entered into a sale and purchase agreement with Icon Square Sdn Bhd to transfer ownership of a six-storey purpose-built facility previously used by KPJ Healthcare College, along with all installed fixtures and fittings.
Portfolio Streamlining Amid Market Uncertainty
The trust said the sale is aligned with its long-term capital recycling strategy, aiming to strengthen financial flexibility during a period of economic volatility. The REIT plans to redirect the funds toward assets with more promising yields or growth prospects — similar to how investors evaluate emerging hotspots such as industrial land in Selangor, expanding industrial clusters near Puchong factories, and rising demand for commercial property in KL.
An independent valuer placed the property's market value at RM13 million in November 2025 based primarily on the income approach, with a comparison analysis as a secondary benchmark. Al-Aqar’s total investment — inclusive of maintenance and enhancement works from 2009 to 2024 — stands at approximately RM14.17 million.
Lease to Be Passed to New Owner
The building, located in Section 5 of Bandar Bukit Mertajam and sitting on roughly 11,728 sq m of land, is currently leased to KPJ Healthcare University Sdn Bhd until July 2026, with an optional one-year renewal. Under the disposal terms, the lease will be transferred to the new owner through a deed of novation.
Icon Square Sdn Bhd’s core business activities include acquiring and managing non-residential real estate, as well as operating sports facilities.
Minimal Earnings Impact
The asset generated RM0.97 million in net property income for FY2024, slightly higher than FY2023. Al-Aqar REIT said the disposal will have minimal effect on overall earnings, reinforcing its decision to sell.
If the RM12 million cash proceeds are not deployed into new investments within 12 months, the trust intends to use them to pare down borrowings — mirroring strategies commonly seen among developers managing industrial property in the Subang area or investors in growth corridors near office space in Bukit Jalil.
Al-Aqar REIT closed one sen higher at RM1.29 on Thursday, translating to a market capitalisation of RM1.08 billion.
