Hunza: Loke Realty’s suit has no major impact on operations, finance

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KUALA LUMPUR: Penang property developer Hunza Properties Bhd announced that a suit brought against it by Loke Wan Yat Realty Sdn Bhd (Loke Realty) would not have any material operational, financial and losses impact on its operations.

In a filing with Bursa Malaysia yesterday, Hunza’s subsidiary Hunza Properties (Gurney) Sdn Bhd (HPG) stated that it had received a writ and statement of claim, both dated March 18, on April 13 from Loke Realty’s solicitors.

Loke Realty had outlined a series of claims and relief from HPG in a suit filed in the Penang High Court on March 29, Hunza (fundamental: 1.70; valuation: 1.80) said.

Loke Realty is the registered proprietor of 91-year-old Loke Mansion that sits on Lot 298, Section 1, along Gurney Drive which is adjacent to HPG’s development on Lots 39, 296, 1237, 1238, 2349 and 2350, Hunza stated.

The Loke Mansion, which faces the sea, was built by philanthropist Wong Loke Yew’s son Alan Loke in the mid 1920s.

Hunza’s adjoining development called Gurney Paragon consists of two 43-storey towers of luxury residences, an eight-storey shopping mall and offices on a 4.1ha land located between Gurney Drive and Jalan Kelawei.

To recap, Hunza said that on or about July 2006, Loke Realty had raised its objection against HPG’s proposed development on the said lands to the then Penang Island Municipal Council (MPPP) (now Penang Island City Council).

“On Dec 5, 2006, MPPP approved HPG’s building plans. Upon receiving MPPP’s approval, HPG commenced development of the lands. Subsequently, whilst development was ongoing, HPG also carried out restoration works on Loke Mansion, which was certified by independent conservation architect firm BK Ooi Architect in its letter dated June 20, 2012,” it stated.

However, Loke Realty commenced legal proceedings against HPG for claims and relief.

Hunza stated that its solicitors opined that the alleged claims for loss of rentals, maintenance costs, monitoring and attendance costs, and professional fees are unsustainable and/or too remote.

 

This article first appeared in The Edge Financial Daily, on April 15, 2015.