AmanahRaya Real Estate Investment Trust (“AmanahRaya REIT”) has entered into a tenancy agreement with Urban Collection Sdn. Bhd. (formerly known as Urban Inn Sdn. Bhd., a subsidiary of Oriental Interest Berhad (OIB)), for the lease and operation of the Ex-Holiday Villa Alor Setar, a 21-storey hospitality asset located within the City Plaza development in Alor Setar, Kedah.
The signing marks a significant milestone in ARREIT’s ongoing portfolio optimisation strategy, breathing new life into one of its landmark properties through a long-term partnership with an experienced hospitality operator.
Under the agreement, Urban Collection will lease the 150,000 sq ft hotel for a 15-year term (structured as three consecutive terms), with tenancy commencing on 29 March 2026 and operations expected to begin by 1 May 2026.
The tenancy is structured as a Double Net lease with 10% rental escalation for each renewal term, ensuring stable income growth for the Trust over the lease duration.
Formerly operated by Holiday Villa Alor Setar, the property had been vacant since 2018. The upcoming refurbishment and upgrading works will revitalise the hotel’s facilities, enhancing its competitiveness in Alor Setar’s hospitality landscape.
Urban Collection plans to reposition the property with a refreshed concept incorporating co-working spaces, modern accommodation, and retail offerings including self-service amenities and vending solutions to cater to evolving traveler preferences.
Datuk Mohd Iskandar Dzulkarnain Ramli, Managing Director of AmanahRaya-Kenedix REIT Manager Sdn. Bhd. (“AKRM”) said,
“This signing represents the reactivation of a key hospitality asset within our portfolio. We are pleased to collaborate with Urban Collection, whose track record in hotel and service management complements our vision of enhancing asset value and long-term income stability for unitholders.”
