news

WCT and Aeon Co agree to settle rental dispute out of court

KUALA LUMPUR (Oct 18): WCT Holdings Bhd’s indirect wholly-owned subsidiary Gemilang Waras Sdn Bhd and AEON Co (M) Bhd have agreed to an amicable out-of-court settlement in relation to their court battle over the lease renewal of AEON Mall Bukit Tinggi.

In the filing with Bursa Malaysia yesterday, WCT said the two parties have executed a supplemental lease agreement to further renew the lease period for another six years commencing Nov 24, 2017.

This is subject to options to renew for a further two terms, comprising six years and three years respectively, it added.

Earlier on July 26, Aeon had consented to pay RM2.42 million per month, equivalent to the current monthly rental, to Gemilang Waras.

AEON Co had received the sealed consent order through its solicitors which ordered it to pay the sum to Gemilang Waras by the 14th day of each month until the disposal of the notice of appeal or November 2019, whichever was earlier.

The court battle started in November last year when AEON Co filed a suit against Gemilang Waras to renew its licence for the mall, stopping the latter from terminating the lease agreement and evicting the tenants of the mall.

On April 27, the high court ruled in favour of WCT, saying that there was no renewal of the lease, which expired on Nov 23, 2017.

Shares of WCT closed up 2.5 sen or 3.03% to 85 sen yesterday, with 3.41 million shares done, for a market capitalisation of RM1.17 billion. Aeon Co's stock ended yesterday 2 sen or 1.24% higher at RM1.64, with 1.16 million shares traded, valuing it at RM2.3 billion. — theedgemarkets.com

Click here for more property stories.

Like our content? Check out Narratives – where we curate stories based on topics to keep you well and broadly informed about Malaysian real estate.

Looking for property? Check out Location Scan, where we summarize all available options and facts you need in a few clicks. We have updated the tool to include MRT3 stations too.

Curious how much you can borrow? Use LoanCheck to get your maximum loan eligibility from various banks, or LoanReport to get a FREE CTOS/CCRIS credit report.
SHARE
RELATED POSTS
  1. AEON Co's FY22 focus on rejuvenation of malls and recovery, MIDF says as it raises TP to RM1.74
  2. Ex-state executive councillor, two others ordered to enter defence in charge for receiving bribes from property developers
  3. High Court allows prosecution to start impeachment bid on Rosmah