Pekat Group Bhd’s wholly owned unit, Pekat Teknologi Sdn Bhd (PTSB), has signed a conditional agreement to lease approximately 470 acres in Sungai Petani, Kedah, for renewable energy development, the company announced in a filing with Bursa Malaysia.

The lease, contracted for 24 years, carries an estimated total rental obligation of RM54.5 million, factoring in the land area and scheduled rental escalations. The site is intended for the construction and operation of solar photovoltaic (PV) systems and battery energy storage facilities, along with ancillary infrastructure to support these developments.

Under the terms, PTSB will secure exclusive rights to the land for three years, during which it must obtain regulatory approvals and finalize an acceptable power off-take agreement for the electricity generated at the location. The monthly rental rate is set at RM350 per acre, with a 3% increment applied every two years following the completion of the project’s construction phase.

A down payment amounting to RM493,500—equivalent to three months’ rent—has been made and will be converted into a refundable security deposit. Pekat anticipates a construction timeline of 24 months, succeeded by a 21-year operational period. The lease agreement also includes an option for PTSB to extend its tenure on the site by one to five additional years.

The identity of the lessor remains undisclosed due to confidentiality obligations, but Pekat disclosed that the counterparty is a Malaysian firm engaged in oil palm plantation and investment holding.

Pekat Group operates in specialized sectors, including solar photovoltaic systems as well as earthing and lightning protection technologies. This move aligns with its strategic push into large-scale renewable energy projects, with a focus on solar power generation and energy storage solutions.