The Challenge

The company has proposed to renew the lease of healthcare properties owned by them, referred to as the “Proposed Lease Renewal”. The Proposed Lease renewal was deemed as a related party transaction as outlined in Paragraph 10.08 of the Main Market Listing Requirements of Bursa Securities.

The Approach

ZICO Capital was appointed as the Independent Adviser to advise the non-interested directors of Damansara REIT Managers Sdn Bhd (manager of Al-‘Aqar) and the non-interested unitholders of Al-‘Aqar on the Proposed Lease Renewal. 

We assessed and evaluated the Proposed Lease Renewal and have documented a detailed evaluation in our Independent Advice Letter addressed to the non-interested directors of Damansara REIT Managers Sdn Bhd (manager of Al-‘Aqar) and the non-interested unitholders of Al-‘Aqar.

Based on our thorough evaluation, we have provided our professional opinion on the fairness and reasonableness of the Proposed Lease Renewal and whether or not the Proposed Lease Renewal was detrimental to the non-interested unitholders of Al-‘Aqar .

Consequently, we provided our recommendation to guide the non-interested unitholders of Al-‘Aqar in making their voting decision regarding the Proposed Lease Renewal.

The Impact

The lease was successfully renewed.

The Proposed Lease Renewal will enable Al-‘Aqar to continue leasing the healthcare properties to KPJ Group, one of the main private hospital operators in Malaysia. As such, the Proposed Lease Renewal will provide a stable and sustainable income to Al-‘Aqar for up to 15 years, allowing Al-‘Aqar to meet its financial obligations and dividend distributions to its unitholders.

To find out more about ZICO Capital, click here.

The lease was successfully renewed.

The proposed lease renewal will enable Al-‘Aqar to continue leasing the healthcare properties to KPJ Group, one of the main private hospital operators in Malaysia. As such, the Proposed Lease Renewal will provide a stable and sustainable income to Al-‘Aqar for up to 15 years, allowing Al-‘Aqar to meet its financial obligations and dividend distributions to its unitholders.

To find out more about ZICO Capital, click here.