1. Introduction

The Board of Directors of Damansara REIT Managers Sdn Berhad (“the Manager”), the manager of Al-Salām Real Estate Investment Trust (“Al-Salām REIT”) wishes to announce that AmanahRaya Trustees Berhad, as trustee for Al-Salām REIT (“ART”), had entered into a Memorandum of Understanding (“MOU”) with Malaysia Rapid Transit System Sdn Bhd (“MRTS”)  for the development of the Pedestrian Overhead Bridge (“POB”) to connect KOMTAR JBCC to the planned link bridge of Rapid Transit System (RTS) Link Bukit Chagar Station.

2. Information on MRTS

MRTS is a company appointed by the Government of Malaysia as Malaysia’s infrastructure company who shall own, fund, build, maintain and renew the RTS Link infrastructure in Malaysia’s territory up to the international boundary between Malaysia and the Republic of Singapore.

3. Salient Terms of the MOU

3.1 Term

The MOU shall be effective from the date of signing and will remain in effect for a period of one year or upon the execution of the development/construction/integration agreement or otherwise terminated in accordance with the provisions of the MOU, whichever is the earliest. The MOU may be extended for a further period as may be agreed in writing by the parties.

3.2 Proposed Salient Term of the Development/Construction/Integration Agreement

• The POB will be constructed by Al-Salām REIT and JLand Group Sdn Bhd (“JLG”). The pedestrian flow is directed from the planned RTS Link bridge to KOMTAR JBCC and to connect to the next pedestrian overhead bridge leading to Coronation Square.

• The width of the POB is more than 4 meters up to 8 meters, taking into consideration the location and arrangement of kiosks and pushcarts.

• The span of the POB is 42 meters which shall be supported by an independent structure to be erected by Al-Salām REIT and JLG.

• The operational hours of the POB are 24 hours a day, 7 days a week.

• The design and construction method of the POB will take into consideration the specifications, interior, façade and finishing that blends with the planned RTS Link bridge.

3.3 Confidentiality

Each party undertakes to observe the confidentiality and secrecy of documents, information and other data received from or supplied to the other party during the period of the implementation of the MOU. The confidentiality obligation shall continue to be binding between the parties notwithstanding the termination of the MOU.

4. Rational and Benefit

The MOU sets out the framework and areas of collaboration which are of mutual interest and benefit to the parties in relation to the proposed development of the POB.

The POB is expected to facilitate pedestrian movement from the RTS Link Bukit Chagar Station to Johor Bahru city centre through KOMTAR JBCC. This will support Al-Salām REIT’s revitalization plan for KOMTAR JBCC.

5. Financial Effects of the MOU

The MOU is not expected to have any effects on the units in issue and substantial unitholders’ unitholding in Al-Salām REIT. There will not be any significant effect on the earnings per unit, net assets per unit and gearing of Al-Salām REIT.

6. Interest of Directors, Major Unitholders and/or Persons Connected with Them

None of the directors of the Manager and/or major unitholders of Al-Salām REIT and/or persons connected with them have any interest, whether directly and/or indirectly, in the MOU.

7. Director’s Statement

The Board, after taking into consideration of all aspects of the MOU, is of the opinion that the MOU is in the best interest of Al-Salām REIT. Further announcements will be made when appropriate.

8. Approvals Required

The MOU is not subjected to the approval of the unitholders of Al-Salām REIT or any regulatory authority.

This announcement is dated 17 July 2023.