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Berjaya Land unit wins arbitration award, to receive remaining RMB974m for sale of China property

27 May 2020 / 22:51 H.

PETALING JAYA: Berjaya Land Bhd’s (BLand) 51%-owned subsidiary Berjaya (China) Great Mall Co Limited will receive the outstanding payment balance of RMB974.07 million (RM595.45 million) from Beijing SkyOcean International Holdings Limited, following the disposal of the Berjaya (China) Great Mall Recreation Centre in Sanhe City, Hebei, in 2015.

In a Bursa Malaysia filing today, BLand said the sum was part of a favourable arbitration award from the Hong Kong International Arbitration Centre (HKIAC), which gave its decision on May 21.

Apart from the outstanding amount, Beijing SkyOcean will also have to pay liquidated damages on the outstanding balance amount calculated at 4.75% per annum from the payment due date of Nov 28, 2017 until the date full payment is made.

“The guarantors, SkyOcean Group Holdings Co Ltd and Zhou Zheng, shall be jointly and severally liable for the amounts payable by Beijing SkyOcean under the final award.

“Beijing SkyOcean and the guarantors shall jointly pay legal costs of about RMB15.9 million and arbitration costs of about HK$3.96 million (RM2.23 million) within 30 days after issuance of the final award, failing which late payment interest at 8% per annum shall be charged from the due date until the date of actual payment,” the company said in its filing.

To recap, BLand disclosed the cashing out of its investment in Berjaya (China) Great Mall Recreation Centre – which was still under construction – back in December 2015, for RMB2.08 billion cash.

The project spanning 306,260 sq m of land area with about 1.21 million sq m of gross floor area, comprised a hotel, serviced apartments, restaurants, recreational centres and commercial shops.

On Dec 8, 2017 BLand said Beijing SkyOcean had failed to pay the outstanding amount of RMB974.07 million, and on Jan 19, 2018 submitted a notice of arbitration to the HKIAC to seek recovery of the outstanding sum and other reliefs against Beijing SkyOcean and the guarantors.

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