TDM Berhad has formalised revised rental rates for approximately 32,089 acres of plantation land leased from Perbadanan Memajukan Iktisad Negeri Terengganu (PMINT), following the signing of supplemental lease agreements covering its oil palm estates in Kemaman, Setiu and Hulu Terengganu.
The state-linked plantation and healthcare group said its wholly owned subsidiary, Kumpulan Ladang-Ladang Terengganu Sdn. Bhd. (KLLT), entered into three supplemental lease agreements with PMINT on July 9 to revise the annual rental payable for the leased land.
The revised agreements cover approximately 25,267 acres in Kemaman, 4,168 acres in Setiu and 2,654 acres in Hulu Terengganu, all of which are currently operated by KLLT for oil palm cultivation.
The rental revision follows provisions in the existing lease agreements that allow PMINT to review rental rates every five years based on prevailing market rates. The latest review was due in February 2023, marking the fifth anniversary of the lease formalisation agreements executed in 2018.
The Kemaman estate is governed under the original principal lease agreement signed in 1965, together with subsequent supplemental agreements, while the Setiu and Hulu Terengganu plantations are covered under separate lease formalisation agreements signed in 2018.
TDM said the latest supplemental agreements specifically provide for the revision of rental rates for the respective leased properties in accordance with the contractual review mechanism
RHB Investment Bank Berhad acted as adviser for the transaction.
