Dutaland receives U-Thant luxury apartments as settlement of debt

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KUALA LUMPUR (June 14): Dutaland Bhd said it will receive 12 vacant luxury residences worth RM45.4 million as part of a settlement of debt owed to its unit by listed firm Olympia Industries Bhd (OIB).

In a stock exchange filing today, Dutaland said its wholly-owned unit KH Estates Sdn Bhd had signed the property settlement agreement with OIB's wholly-owned subsidiaries Olympia Properties Sdn Bhd (OPSB) and United Malaysian Properties Sdn Bhd (UMP).

The group said the luxury residences, which come with 39 car park bays, are located within Taman U-Thant next to Ampang Hilir in Kuala Lumpur, an area noted for its exclusivity and high net worth residents and embassies.

The settlement properties, which Dutaland plans to later dispose of, have a total built-up area of about 48,422 sq ft.

Dutaland said the settlement is part of the sum of about RM81.2 million owed by OPSB to KH Estates, with the remaining sum of RM12.08 million to be settled in cash by Dec 31.

OPSB had between August 2016 and March 2018 progressively settled RM23.72 million.

The debt arose from sale proceeds of a piece of land in Mukim Batu, Kuala Lumpur, that was held by OPSB back in 2016.

In 2003, OPSB and KH Estates had initially agreed to jointly develop the land measuring approximately 73.44 acres, with obligations, disbursements and liabilities at a ratio of 42% to OPSB and 58% to KH Estates.

However, subsequent to the consortium agreement, there was a re-alienation or subdivision on the land resulting in new title particulars, where parts of the land were then sold off by OPSB in April 2016.

Dutaland said that barring unforeseen circumstances and subject to all approvals being obtained, the proposed settlement is expected to be completed by the fourth quarter of this year.

Shares in Dutaland slid half a sen or 0.95% to close at 52 sen today, with a market capitalisation of RM439.98 million.