Hektar Real Estate Investment Trust (Hektar REIT) was established in 2006 in Kuala Lumpur, Malaysia, as the country’s first retail-focused REIT. Its portfolio includes shopping centers in Subang Jaya, Melaka, Muar, Sungai Petani, Kulim, and Segamat, with a combined value of RM1.2 billion.
The company is committed to conducting business with high standards of social and environmental responsibility, ensuring long-term value creation. To achieve this, Hektar REIT has implemented responsible business practices that shape future sustainability growth while maintaining close engagement with stakeholders, including local communities and authorities, to stay ahead of emerging challenges and solutions.
Hektar REIT’s sustainability efforts are guided by a structured governance framework. The Sustainability Steering Committee, led by the Executive Director and CEO, includes key executives such as the Chief Corporate Officer, Chief Operating Officer, and Chief Leasing Officer. The Sustainability Working Committee consists of representatives from Finance, Maintenance, Marketing, Leasing, and Quality departments, as well as Centre Managers.
Leading in Energy Efficiency
With energy consumption being its most significant environmental impact, Hektar REIT launched an Energy Efficiency (EE) program in early 2017. Collaborating with an Energy Services Company (ESCO) endorsed by the Malaysian Energy Commission, the company conducted comprehensive audits and redesigns of air conditioning and mechanical ventilation (ACMV) systems across its six malls to optimize energy utilization.
One of the earliest and most impactful EE initiatives was the 2017 retrofit of Subang Parade’s ACMV system. This involved replacing outdated chillers, pumps, and cooling towers, along with installing an automated and dynamic Building Management System. Before these improvements, Subang Parade consumed an average of 1,278,416.67 kWh per month in 2016. By January 2018, the mall had achieved a 33.82 percent reduction in energy usage, saving approximately 432,320 kWh per month. Carbon emissions decreased by 7.36 percent in 2017 and further dropped by 28.56 percent in 2018 following a RM7 million chiller plant overhaul and replacement.
In line with its sustainability goals, Subang Parade also implemented an LED replacement program in 2017, reducing energy consumption for illumination by 15.82 percent, from 317,072.88 watts to 266,908.40 watts.
Waste and Water Management Innovations
Subang Parade’s management actively promotes waste management through the 3R principle—Reduce, Reuse, Recycle. The mall reduced its monthly waste from 85 tons by providing recycling bins for customers and tenants, encouraging greater recycling participation. In collaboration with NGOs, Subang Parade has also introduced an electronic waste recycling campaign to engage the community in responsible disposal practices.
Water conservation is another key focus for Hektar REIT. By reducing toilet flush volumes from 14 to 8 liters and decreasing the flow time of push-type water faucets from four seconds to two seconds, the company saved 4,244 m³ of water per month in 2018. This translated to a monthly cost reduction of RM11,210.
The company’s total reduction in energy consumption across all Hektar Malls in 2018 amounted to approximately 5.884 million kWh, leading to a greenhouse gas emissions reduction of 4,161 metric tons.
Recognition for Sustainability Excellence
With its commitment to energy efficiency and sustainable business practices, Subang Parade is being considered for Malaysia’s National Energy Award under the Energy Efficient Building category. Conferred by the Ministry of Energy, Science, Technology, Environment, and Climate Change (MESTECC), this recognition underscores Hektar REIT’s leadership in sustainable retail property management.
