Hatten Land Limited issued a statement on the 20th of March to clarify “certain media coverage” regarding the company’s projects.
The company claims that the majority of its projects are completed and handed over to the respective customers.
J’Den Condo Jurong East Central with 368 units of flat/apartment and 7 commercial units units ranging from 1 to 5 bedrooms spread over floors.
Some of the projects which are completed includes Hatten City 1 comprising ElementX, Hatten Place and Silverscape. Hatten City 2, which includes Imperio Mall as well as Imperio Residences as well, has been completed. Another of the Hatten Land’s projects Vedro is also complete.
The group also said that the construction efforts for two projects in development were stopped due to the effect of Covid-19 as well as related policies of the government on hospitality and tourism in Melaka. Two of the initiatives comprise Harbour City and Satori.
According to the company, the agreement reached in August 2020 with Tayrona Capital on August of 2020 was not signed as Tayrona Capital has not been in compliance with its obligations in relation to the conclusion of the proposed deal, including the obligation to pay the purchase price.
“Despite these obstacles the company continues to make reasonable efforts to aid the affected property buyers, including the planned divestment of its subsidiary Gold Mart Sdn Bhd as well as its Harbour City project with Tayrona Capital,” says Hatten Land through its statement.
“However because Tayrona Capital has not complied with its obligations, such as payment of the consideration and consideration, the company has announced and issued a notice of cancellation in order to Tayrona Capital to terminate the agreement on February 20, 2023.” it states.
For Satori delays were caused by Satori’s chosen contractor closing down and filing for bankruptcy. down. In the statement, Hatten Land says the company is currently developing a bid to choose an additional contractor. The group expects construction to begin within six months following Harbour City resumes construction.
As per the announcement, the board has stated that Hatten Land can “continue as a running concern” after taking into consideration a number of factors, such as its “substantial worth of completed but unsold properties”.
“The group will slowly sell the remaining completed properties and the not sold properties are valued at market value equal to RM1.107 billion ($331.4 million) on June 30th 2022.
Furthermore, the group declares that its debts particularly the $25 million ($33.4 million) secured bonds, are backed by other hospitality assets that are provided by a related company to the company that’s estimated market value of the assets of the assets is RM238 million.
The company claims it is also able to begin the process of collecting more than RM230 million in receivables due to customers. The collection was earlier stopped due to an agreement with Tayrona in the wake of the sale of Gold Mart.
The company says it has begun the process of restructuring its strategic affiliate, MDSA Resources Sdn Bhd to simplify its existing contract obligations in order to create an improved capital structure that is sustainable. The company has worked closely with its lenders and creditors to expand or modify the repayment plan.
Shares of Hatten Land closed at 1.6 cents on the 20th of March.