CAPITALAND MALAYSIA MALL TRUST ("CMMT") JOINT COLLABORATION AGREEMENT BETWEEN MTRUSTEE BERHAD (FORMERLY KNOWN AS AMTRUSTEE BERHAD) AS TRUSTEE FOR CMMT AND K TWO REALTY HOLDING SDN. BHD.
The Board of Directors of CapitaLand Malaysia REIT Management Sdn. Bhd. (“CMRM” or “Manager”), manager of CMMT, wishes to announce that MTrustee Berhad (formerly known as AmTrustee Berhad), being trustee of CMMT (“Trustee”), on behalf of CMMT, has on 1 June 2017 entered into a Joint Collaboration Agreement (“JCA”) with K Two Realty Holding Sdn. Bhd. (“K Two”) (CMMT and K Two shall be referred to as the “Party” or “Parties”) to fund, plan, project manage, construct and complete the construction of a link bridge between Sungei Wang Plaza (“SWP”) and the existing pedestrian bridge leading to Berjaya Times Square including inter alia the construction of external escalators located at the side façade of SWP (“Project”) (“Joint Collaboration”). The estimated construction cost of the Project is RM8,500,000 and the contribution of each Party shall initially be RM4,250,000 to be made in progressive payments to meet the cost of the Project.
The JCA sets out the understanding and obligation of the Parties towards the Project. Barring any unforeseen circumstance, the Project is estimated to be completed by 4th Quarter 2018. Upon completion of the Project, Sungei Wang Plaza Management Corporation (“SWPMC”) is agreeable to take over the control and use of the link bridge and/or the external escalators from the parties and SWPMC will undertake the subsequent maintenance of the link bridge and/or the external escalators. All revenue that may be earned from the use of the link bridge if accrued post the completion of the construction of the Project shall accrue to the SWPMC.
K Two was incorporated in Malaysia on 6 October 2006 under the Companies Act, 1965 and has an issued and paid up share capital of RM5,000,000. K Two is primarily involved in the business of investment property. The following persons are directors as well shareholders of K Two and their respective shareholding are as follows: -
Two of the above directors and shareholders of K Two, namely Mr Lim Aik Hoe and Mr Lim Aik Kiat are also directors and shareholders of Exsim Development Sdn. Bhd., a property developer who focus in industrial and high rise residential developments.
Through the Joint Collaboration, CMMT and K Two will be able to collaborate and leverage on each other’s strength and share the cost of the Project in order to improve the connectivity of SWP.
The funding of CMMT’s contribution to the Project will be solely funded by borrowings.
The Joint Collaboration will not have any effect on the total units of CMMT nor on the substantial unitholders’ unitholding of CMMT as it does not involve any allotment or issuance of new units of CMMT. The Joint Collaboration will also not have any material effect on the earnings, net asset value and gearing of CMMT.
Pursuant to the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Joint Collaboration is neither subject to the approvals of the Securities Commission nor the unitholders of CMMT.
None of the directors of the Manager, major unitholders of CMMT, major shareholders of the Manager or persons connected with them has any interest, direct or indirect, in the Joint Collaboration.
This announcement is dated 1 June 2017.
|Company Name||CAPITALAND MALAYSIA MALL TRUST|
|Date Announced||01 Jun 2017|
|Category||General Announcement for PLC|