Country Heights units face property auctions with RM207.8m combined reserve prices

PETALING JAYA (Sept 10): Two properties owned by wholly owned subsidiaries of Country Heights Holdings Bhd (CHHB) are set for judicial auctions with combined reserve prices of RM207.77 million, following separate enforcement proceedings.

The larger asset is the Mines Waterfront Business Park development in Petaling, Selangor, which carries a reserve price of RM152.77 million and is due to be auctioned on Nov 4.

Separately, a 6.41-acre freehold commercial parcel in Country Heights, Kajang, will go under the hammer on Sept 21 at a reserve price of RM55 million.

In separate Bursa Malaysia filings on Thursday (Sept 10), CHHB said the properties are owned by wholly owned subsidiaries and the auctions arise from separate enforcement proceedings.

Mines Waterfront Business Park

The Mines Waterfront property is owned by Mines Waterfront Business Park Sdn Bhd (in liquidation) and was charged to MBSB Bank Bhd as security for financing facilities granted to the subsidiary.

The approximately 667,147 sq ft (61,980 sq m) leasehold property, held under HSD 59887, PT 16715 in Mukim Petaling, comprises completed office blocks, unsold units, incomplete buildings and vacant commercial land.

It is due for public auction through the court's e-Lelong system at 9am on Nov 4, pursuant to High Court orders dated Dec 12, 2025 and Aug 26, 2026.

CHHB said it had provided a corporate guarantee for the financing facilities, while major shareholder Tan Sri Lee Kim Yew had provided a personal guarantee.

The company said the auction forms part of MBSB's enforcement and recovery process for the outstanding indebtedness and does not constitute a voluntary disposal by CHHB or its subsidiary.

Based on the RM152.77 million reserve price and CHHB group's net assets of about RM581.15 million, the applicable percentage ratio is about 26.29%.

CHHB said the ultimate financial impact can only be determined after the auction, taking into account the proceeds, payments and recoveries received by MBSB, interest adjustments, any recoveries from Lee's personal estate and any remaining liability under CHHB's corporate guarantee.

Kajang commercial land

The second property is owned by Country Heights Commercial Development Sdn Bhd (CHCD), another wholly owned subsidiary of CHHB.

The 6.41-acre (2.60ha) freehold commercial parcel at Lot 37653, Jalan Sinar Pagi, Country Heights, Kajang, is held under GRN 122934 and is due for electronic public auction at 9am on Sept 21 at a reserve price of RM55 million.

CHHB said it became aware on Wednesday (Sept 9) of an advertisement relating to the judicial auction. The High Court proceedings in Shah Alam are between CGS International Capital Singapore Pte Ltd and CHCD.

The property was previously scheduled for auction on March 25, 2025 at a reserve price of RM69.85 million, but the auction was unsuccessful. The current reserve price is RM14.85 million, or 21.26%, lower.

The property was charged in favour of CGS-CIMB Capital Pte Ltd as security for an S$11.5 million term loan facility, which CHHB stated was equivalent to RM35 million, granted to CHHB.

CHHB said the land has a carrying value of about RM33.5 million based on CHCD's latest available financial statements. As the auction has yet to take place, the actual sale consideration and resulting gain or loss cannot yet be determined.

Based on the RM55 million reserve price, the highest applicable percentage ratio under Bursa Malaysia's Main Market Listing Requirements is about 9.46%.

CHHB and CHCD are reviewing the matter with their legal advisers and assessing their legal and commercial options.

The group said the auction is not expected to have any immediate material impact on its day-to-day operations, apart from the potential loss of ownership of the property if the auction is successfully completed.

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