Pekat Group Berhad, through its wholly-owned subsidiary Pekat Teknologi Sdn Bhd, has entered into a conditional land lease agreement covering approximately 190 hectares (470 acres) in Sungai Petani, Kedah, Malaysia, to support the development of renewable energy projects.
The 24-year lease has an estimated value of RM54.5 million and was secured from a private Malaysian company involved in oil palm plantations and investment holdings. The leased property comprises three land lots located in Mukim Sungai Petani, Kuala Muda, and will be used exclusively for renewable energy-related developments.
Pekat plans to utilize the site for solar photovoltaic (PV) generation, battery energy storage systems (BESS), and associated supporting infrastructure. The agreement forms part of the company’s strategy to expand its presence in solar generation and energy storage.
Under the lease terms, Pekat will initially pay RM350 per acre per month. Based on the total land area, this represents approximately RM164,500 per month or RM1.97 million annually once the lease commences. The rental rate will increase by 3% every two years after the initial two-year construction period.
Pekat has also agreed to make a RM493,500 down payment, which will be converted into a refundable security deposit when the lease officially begins.
The agreement includes a three-year exclusivity period commencing September 21, 2026. During this period, the landowner cannot sell, mortgage, or lease the property to another party.
The transaction remains subject to Pekat obtaining the required regulatory approvals and planning permissions, as well as securing a commercially viable electricity offtake arrangement.
Following fulfilment of the conditions, Pekat expects a two-year construction period, followed by 21 years of operations. The company will also have an option to extend the lease by between one and five years.
The proposed development is expected to strengthen Pekat Group’s renewable energy portfolio and support its expansion into utility-scale solar and energy storage infrastructure in Malaysia.
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