Hatten Land Limited PH0 has issued a statement on March 20 to make clarifications on “certain media articles” on the group’s projects.
In its statement, the group says the majority of its projects have been completed and delivered to their respective buyers.
Some of the projects that have been completed include Hatten City 1 which comprises ElementX, Hatten Place and Silverscape. Hatten City 2, which comprises Imperio Mall, Imperio Residences, has also been completed. Another one of Hatten Land’s projects, Vedro, was also completed.
Meanwhile, the group explained that the construction activities of two of its projects under development were halted mainly due to the impact of Covid-19 and related government measures on tourism and hospitality in Melaka. The two projects are Harbour City and Satori.
According to the group, the agreement signed with Tayrona Capital in August 2020 was not completed as Tayrona Capital has not complied with its obligations in respect of the completion of the proposed transaction, including the obligation to pay the consideration
“Despite these challenges, the group has continued to use all reasonable endeavours to assist affected property purchasers, including the proposed divestment of subsidiary, Gold Mart Sdn Bhd, and its Harbour City project with Tayrona Capital,” says Hatten Land via its statement.
“However, as Tayrona Capital has not complied with its obligations, including payment of consideration, the group has issued and announced a notice of termination to Tayrona Capital to terminate the agreement in February 2023,” it adds.
For Satori, the delay was due to Satori’s appointed contractor filing for bankruptcy and shutting down. In its statement, Hatten Land says the group is currently working on a tender to appoint a new contractor and expects construction to resume around six months after Harbour City resumes construction.
Further to its statement, the board says Hatten Land can “continue as a going concern” after considering several factors including its “substantial value of unsold completed properties”.
See also: Frasers Property: Narrowing the discount
“The group will progressively sell its unsold completed properties and those unsold properties have market value amounting to approximately RM1.107 billion ($331.4 million) as at June 30, 2022.
In addition, the group says its liabilities, in particular the US$25 million ($33.4 million) secured bonds are secured by additional hospitality assets provided by a related party of the company, of which the market value is RM238 million.
The group says it will also be able to restart the collection of over RM230 million of receivables from customers, which was previously halted due to the agreement with Tayrona following the termination of the disposal of Gold Mart.
The group adds that it has embarked on strategic restructuring of its subsidiary, MDSA Resources Sdn Bhd to restructure its legacy contractual obligations to achieve a more sustainable capital structure and that it has worked closely with its creditors and financiers to extend and, or restructure the repayment plans.
Shares in Hatten Land closed at 1.6 cents on March 20.
