Subang Sentral Development has entered into a JVA with Pojek Muara and Dergahayu, to complete the development
by AUFA MARDHIAH / graphic TMR
HCK Capital Group Bhd’s indirect wholly owned subsidiary, Subang Sentral Development Sdn Bhd (SSDSB), has been appointed as the white knight to complete the Empire Remix 1 project on Sept 29, 2022, in accordance with a court-approved Corporate Voluntary Arrangement (CVA) scheme.
In a filing to Bursa Malaysia, SSDSB has entered into a joint venture agreement (JVA) with the land owner, Projek Muara Sdn Bhd (PMSB), and its subsidiary, Dergahayu Sdn Bhd (DSB), for the former to complete the development.
HCK Capital stated that the JVA was formed after the original developer, True Renaissance Development Sdn Bhd (TRDSB), a subsidiary of Mammoth Empire Holding Sdn Bhd, was unable to complete the project — hence, decided to employ the CVA scheme procedure to acquire the approvals of its creditors (primarily owners of the project’s sold units) to designate Subang Sentral as the white knight to complete the Empire Remix 1 project.
On Sept 29, 2022, TRDSB obtained approvals from its creditors (from creditors meeting pursuant to the CVA scheme) holding 90.7% of the total debts outstanding, to appoint SSDSB as the white knight to complete the project.
“By taking over this project, HCK Capital will be able to widen its earnings base and increase the group’s property-related activities. This is in line with HCK’s objective to constantly seek suitable and viable purchase possibilities, which may include, among other things, JV projects, landbank acquisitions and property projects to further develop HCK Capital’s property-related enterprises.
“The entire development revenues, costs and expected profits from the JV development have yet to be finalised, since the detailed development plan and suggested revisions to it are still being finalised with the relevant authorities,” said HCK Capital.