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PKNS sues Parkson over alleged failure to pay rent for retail space in Bangi mall

KUALA LUMPUR (Dec 26): A firm owned by the Selangor State Development Corp (PKNS) and Andaman Group is suing Parkson Corporation Sdn Bhd (PCSB) for allegedly failing to pay rent for a retail space in EVO Shopping Mall in Bangi.

PKNS-Andaman Development Sdn Bhd (PKNS), in its statement of claim dated Sept 13 and served on Dec 23, accused PCSB of failing to pay the rent as provided for in a tenancy agreement dated Oct 2, 2017.

PCSB is wholly-owned by Singapore-listed Parkson Retail Asia Ltd (PRA), which in turn is a subsidiary of Parkson Holdings Bhd. PRA operates Parkson Holdings’ stores in Malaysia, Vietnam and Indonesia. 

In a filing today with the Singapore Exchange, PCSB said PKNS is claiming from the company, RM3.66 million in accrued monthly rental for the period from April 2, 2018 to Dec 2, 2019, as well as RM182,958 per month until the return of the retail space to PKNS.

Alternatively, PCSB can also pay PKNS RM3.84 million — which represents the accrued rental from Feb 27, 2017 to Nov 27, 2019. This option also includes PCSB paying PKNS RM182,958 a month until PCSB delivers the retail space to PKNS.

Additionally, PKNS is also claiming RM1.86 million from PCSB as compensation for PKNS’ contribution to the department store’s renovation costs.

PKNS also wants PCSB to deliver the retail space in original condition within 14 days from the judgment and pay for PKNS’ court and legal costs.

PCSB has rejected PKNS’ claims, saying no rental is payable as the latter “has failed to satisfy the conditions precedent as set out in the tenancy agreement for rental commencement to be triggered”.

PCSB is also of the view that PKNS’ act of backdating the commencement date of rental in the commencement notice “without satisfying the conditions precedent”, is unlawful.

PRA executive chairman Tan Sri William Cheng said PCSB has a good defence and has instructed its solicitors to vigorously fight the suit.

“The company will make the appropriate announcements in due course, if there [are] any material developments,” Cheng, who is also the executive chairman of Parkson Holdings, said.

Parkson Holdings' shares were unchanged at 21.5 sen in afternoon trading today, giving the group a market capitalisation of RM235.2 million.

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