Al-Salam Real Estate Investment Trust (KLSE:ALSREIT) entered into a conditional sale and purchase agreement to acquire Mydin Hypermarket Gong Badak in Malaysia from Mydin Wholesale Cash and Carry Sdn Bhd for approximately MYR 160 million on October 2, 2017. There are no liabilities to be assumed by Al-Salam Real Estate Investment Trust as part of the acquisition. The consideration will be paid in cash. Al-Salam Real Estate Investment Trust will pay an earnest deposit of MYR 3.1 million equivalent to 2% of the consideration upon execution of the agreement. Upon completion of the acquisition, the earnest deposit shall be applied in and towards part payment of the consideration. Subject to the conditions precedent being fulfilled within the conditional period, the balance purchase consideration of MYR 151.9 million equivalent to 98% of the consideration will be paid by Al-Salam Real Estate Investment Trust to Mydin Wholesale Cash and Carry Sdn Bhd’s solicitors as the stakeholders within 7 business days commencing from the date upon which the agreement shall become unconditional with a further extension of 2 months subject to a late payment penalty at a rate of 8% per annum to accrue on the balance purchase consideration remaining unpaid, calculated on a daily basis. On May 23, 2018, Al-Salam Real Estate and Mydin Wholesale Cash and Carry entered into a supplemental agreement to vary certain terms and conditions of agreement. The transaction shall be funded through bank borrowings and/or debt financing to be secured by Al-Salam Real Estate Investment Trust. In case of default by Al-Salam Real Estate Investment Trust, Mydin Wholesale Cash and Carry Sdn Bhd shall be entitled to forfeit the earnest deposit and to claim from Al-Salam Real Estate Investment Trust an additional amount equivalent to 8% of the purchase consideration as liquidated damages. In case of default by Mydin Wholesale Cash and Carry Sdn Bhd, Al-Salam Real Estate Investment Trust shall be entitled to claim from Mydin Wholesale Cash and Carry Sdn Bhd an amount equal to 10% of the consideration as liquidated damages and Mydin Wholesale Cash and Carry Sdn Bhd shall refund and pay to Al-Salam Real Estate Investment Trust all monies that have been paid by Al-Salam Real Estate Investment Trust to Mydin Wholesale Cash and Carry Sdn Bhd towards the account of the consideration. Mydin Hypermarket Gong Badak in Malaysia reported rental income of MYR 6.99 million during the financial year ending March 31, 2017. The acquisition is conditional upon the leaseback agreement with Mydin Mohamed Holdings Bhd. for the lease of Mydin Hypermarket Gong Badak for a period of 30 years on a triple net lease agreement lease agreement becoming effective immediately after the completion of the acquisition. The transaction is subject to the approval of state authority, the approval of Board of Al-Salam Real Estate Investment Trust, the approval of the Securities Commission Malaysia, the legal due diligence exercise in respect of the property by Al-Salam Real Estate Investment Trust solicitors having been completed to the satisfaction of Al-Salam Real Estate Investment Trust, Al-Salam Real Estate Investment Trust obtaining a financing facility and the receipt of confirmation from Al-Salam Real Estate Investment Trust financier’s solicitors that all conditions for the disbursement/drawdown of the financing have been met, any and/or all such other consents and regulatory and/or governmental approvals required to be obtained by Al-Salam Real Estate Investment Trust for the completion of acquisition of the property and approval of shareholders' and Board of Mydin Wholesale Cash and Carry Sdn Bhd. The conditions shall be fulfilled within six months from the date of the agreement. The acquisition is not conditional upon any other corporate exercises being or proposed to be undertaken by Al-Salam Real Estate Investment Trust. The acquisition is expected to be completed in the first quarter of 2018. As of March 29, transaction is expected to close on June 1, 2018. As of May 23, 2018, the transaction is expected to close on June 28, 2018. As of July 2, 2018, the transaction is expected to close on July 31, 2018. As of July 10, 2018, parties entered into a second supplemental agreement pursuant to the extension of time and variation. As of August 1, 2018, the transaction is expected to close on August 31, 2018. As of August 7, 2018, all conditions precedent in the sale and purchase agreement got fulfilled on and the acquisition became unconditional. The acquisition is not expected to have a material effect on Al-Salam Real Estate Investment Trust earnings and distributable income for the financial year ending December 31, 2017. The acquisition is expected to increase the earnings per unit and distribution per unit of Al-Salam Real Estate Investment Trust moving forward. Cheston International (KL) Sdn Bhd acted as the valuer for the property. RHB Investment Bank Berhad acted as the financial advisor to Al-Salam Real Estate Investment Trust. Al-Salam Real Estate Investment Trust (KLSE:ALSREIT) completed the acquisition of Mydin Hypermarket Gong Badak in Malaysia from Mydin Wholesale Cash and Carry Sdn Bhd on September 24, 2018.