On behalf of the Board of Directors of Hektar Asset Management Sdn Bhd ("Board"), being the management company of Hektar REIT ("Manager"), UOB Kay Hian (M) Sdn Bhd (formerly known as UOB Kay Hian Securities (M) Sdn Bhd) ("UOBKH") wishes to announce that MTrustee Berhad, acting solely in its capacity as the trustee for and on behalf of Hektar REIT ("Trustee" or the "Purchaser"), had on 22 May 2026 entered into a conditional sale and purchase agreement ("SPA") with KYS College Sdn Bhd ("KCSB" or the "Vendor") for the proposed acquisition of the Vendor's leasehold interest in part of the land held under Geran 78335, Lot 201057, Mukim of Setapak, Daerah Kuala Lumpur, Negeri Wilayah Persekutuan Kuala Lumpur ("Land"), together with the existing buildings and a new building to be constructed thereon, comprising an international and private school known as 'KYS KL East International School' ("KYSKLEIS") ("Buildings") at the purchase consideration of RM125.00 million ("Purchase Consideration"), to be satisfied via (a) cash payment amounting to RM106.55 million and (b) allotment and issuance of new ordinary units in Hektar REIT ("Hektar REIT Units" or "Units") ("Consideration Units") with an aggregate value of RM18.45 million, to be issued at an issue price determined based on a discount of not more than 5% to the 5-day volume weighted average market price ("VWAP") of Hektar REIT Units up to and including the unconditional date of the SPA, subject to a minimum issue price of RM0.4385 per Unit ("Issue Price").

The Vendor currently has a 30 years ground lease on the Land commencing from 1 March 2016 and expiring on 28 February 2046 pursuant to a master lease agreement dated 1 March 2016 ("Master Lease") entered into between the Vendor and Sime Darby Property (KL East) Sdn Bhd ("Lessor") ("Master Lease Agreement" or "MLA"). Upon completion of the SPA, the Master Lease under the MLA (including supplemental MLA) will be novated to the Purchaser. The acquisition of the Master Lease, Existing Buildings (as defined herein) and its building content and New Building (as defined herein) are undertaken in conjunction with a sale and leaseback arrangement, whereby the Purchaser shall subsequently grant a sub-lease over the Land and Buildings (collectively, the "Subject Property") to the Vendor to continue operating KYSKLEIS ("Sub-Lease").

The above are collectively referred to as the "Proposed Acquisition and Lease".

Further details on the Proposed Acquisition and Lease are set out in the attachment enclosed.

This announcement is dated 22 May 2026.