Pekat leases 470 acres in Sungai Petani for a solar farm

Pekat Group’s solar subsidiary, Pekat Teknologi Sdn Bhd, signed a conditional 24-year lease on Monday, 21 September 2026, for about 470 acres of oil-palm land in Mukim Sungai Petani, Kuala Muda district, Kedah, to build a solar photovoltaic plant with battery storage. Rent is RM350 an acre a month, which Pekat puts at RM54.5 million over the term. Pekat left the landlord’s name out of its Bursa Malaysia filing, citing confidentiality; Bursa queried that the next day, and on 23 September Pekat named TCC Plantation Sdn Bhd, a private plantation company based at Topah Baru Estate in Semeling, Bedong, owned by Teh Chai Choe, Teh Tee Yang and Teh Weng Wah.

The lease in numbers

• Land: approximately 470 acres (190 ha, about 20.5 million sq ft) over three titles, Geran 10854 Lot 8601, Geran 10855 Lot 8602 and Geran 10535 Lot 8603, all in Mukim Sungai Petani.
• Rent: RM350 an acre a month, which is RM164,500 a month or RM1.97 million a year for the whole site: RM4,200 an acre a year, or just under 10 sen per sq ft a year.
• Escalation: 3% on every second anniversary of the commencement date after the two-year construction period. Pekat’s RM54.5 million total only reconciles if the first step comes at the end of year four, so the rent stays flat through the build and the first two operating years, then rises ten times, to about RM470 an acre by the closing years.
• Average over the term: RM2.27 million a year, or roughly RM116,000 an acre across the 24 years.
• Deposit: RM493,500 within 30 days, exactly three months’ rent, which confirms the acreage is a round 470. It reserves the land through the exclusivity period, then converts into a refundable security deposit for the life of the lease.
• Term structure: a three-year exclusivity period from 21 September 2026, during which TCC may not sell, lease or charge the land. The conditions must be met by the cut-off at the end of it, around 20 September 2029, unless both sides agree to extend. Then a 24-month construction period and a 21-year operating period, with an option to extend by one to five years.
• Conditions: planning permission and every other approval, at Pekat’s cost, and an offtake agreement acceptable to Pekat: a power purchase agreement, corporate PPA, energy supply agreement, private offtake, wheeling arrangement or any other binding sale of the electricity. Pekat may also terminate if that offtake agreement later collapses through no fault of its own.
• Not disclosed: the plant’s capacity, battery size, development cost, financing and offtaker, as EdgeProp noted. Pekat says the lease has no material effect on its 2026 accounts, and no director or major shareholder has an interest in it.

Where the land is

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EdgeProp’s EPIQ map plots the three titles as one irregular block roughly 2.3 km east to west and 1.5 km north to south, split by a stream, with state road K163 touching its south-west corner. Kampung Baru Bukit Topang lies to the south-east, with the Bukit Selambau industrial area (Kawasan Perusahaan Bukit Selambau) about 4 to 5 km beyond it, and a large estate grid runs along the eastern boundary. By our reading of the map scale, the block sits about 13 km north-east of Sungai Petani town centre and 6 to 7 km from TNB’s Bukit Selambau solar farms. (distances are estimated from EdgeProp’s map scale and OpenStreetMap coordinates, not from a survey plan.) TCC Plantation’s own address, Topah Baru Estate at Semeling, is some 10 km to the west, so the leased titles are not necessarily its home estate.

Kuala Muda is already Malaysia’s solar district

The block sits inside the country’s densest cluster of utility-scale solar:

• TNB at Bukit Selambau. TNB’s early large-scale solar farms are here. The second, TNB Bukit Selambau Solar Dua, is 50MWac on 175 acres, financed with RM185 million and operating since 2023. That is 3.5 acres per MWac, the best local benchmark for what 470 acres can hold.
• TNB’s 500MWac plant. The largest award in the LSS programme’s history, won by TNB Renewables under LSS5 in December 2024 and being built by Solarvest under a RM401 million EPCC contract due 31 July 2027. It will bring the grid capacity a 100MW-class neighbour needs.
• Uzma in Mukim Sungai Petani. A 50MWac LSS4 plant owned by Uzma Kuala Muda Sdn Bhd and built by Samaiden under a RM181.34 million contract awarded in July 2023, for commercial operation in 2026.
• Samsung SDI with ib vogt. A 29.99MW Corporate Green Power Programme farm in Sungai Petani supplying Samsung SDI’s Malaysian battery plant, ground broken in April 2025 and due to be energised in 2026.
• Binastra. Two LSS5 plants of 10MWac and 16.55MWac in Kuala Muda, whose EPCC contracts were awarded in December 2025.

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What 470 acres could hold

At TNB’s Bukit Selambau ratio of 3.5 acres per MWac, 470 acres would carry roughly 135MWac; at the 4.5 acres per MW more typical of tracker-mounted farms with a battery yard, about 105MWac. Either figure is a step up from anything Pekat has owned. Its first wholly owned plant, signed in January 2026 through Pentas RE Sdn Bhd, is a 25MWac solar farm with a 40MWh battery in Kuantan district, Pahang, which Pentas RE will build, own and operate for an unnamed heavy-industry customer under a 21-year PPA with projected revenue of RM239 million. The 29.99MWac Tronoh farm in Perak, which Pekat built for RM115 million and which reached commercial operation this year, sits in its venture with Mega First; MBSB Research expects it to give Pekat RM4 million to RM5 million a year. [CHECK: The Edge (September 2024) described MF Solar Tronoh as an indirect wholly owned unit of Mega First, while MBSB (August 2026) treats the farm’s income as Pekat’s; the plant was originally set up as Pekat Solar Tronoh and Pekat holds 45% of the MFP Solar venture, so the exact holding needs confirming.]

The offtake is the open question. The lease’s wording covers every route: a utility PPA of the kind LSS6 awards, a corporate PPA, or a wheeling arrangement, which is how a plant sells to a data centre over TNB’s grid under the Corporate Renewable Energy Supply Scheme (CRESS). MBSB reported in December that Pekat was already fielding CRESS enquiries from data centres. The timing also fits LSS6: bids for the 2,500MW solar and 1,250MW battery programme closed on 7 August for packages 1 and 2 and on 28 August for package 3, each package 1 bid sized between 60MW and 500MW with a mandatory battery, and analysts expected results around September. Pekat has not said whether it bid. [CHECK: no LSS6 shortlist had been announced at the time of writing.]

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Who is Pekat

Kota Damansara-based Pekat Group started in earthing and lightning protection in 1999, listed on the ACE Market in June 2021 and has since become a solar EPCC contractor, the 60% owner of switchgear maker EPE Switchgear, bought for RM96 million in 2024, and, increasingly, an owner of generating assets. Revenue was a record RM610 million in 2025 and RM343 million in the first half of 2026, up 24% on a year earlier, with net profit of RM26.6 million. The order book stood at RM797 million at June, RM308 million of it switchgear and RM298 million earthing and lightning work, much of it for data centres. Its Kulai, Johor large-scale solar EPCC contract was enlarged from 63MWac to 135MWac in June, taking it to RM186.54 million, and three earthing subcontracts on a Johor Bahru project worth RM57.18 million were disclosed on 7 September. A transfer to the Main Market is targeted for the fourth quarter of 2026. The shares closed at RM2.40 on 23 September, up 5.7% on the day the landlord was named, valuing the group at about RM1.7 billion.

![Pekat Group’s headquarters at Taman Sains Selangor, Kota Damansara. Photo: Pekat Group Bhd, via New Straits Times](/images/news/pekat-group-headquarters-kota-damansara.

*Cover map: EdgeProp EPIQ, showing the three titles in red. Photos: ib vogt (Samsung SDI ground-breaking); Pekat Group Bhd via New Straits Times (headquarters).*