Country Heights Holdings Bhd failed to finalise the RM44.1 million acquisition of The Heritage Tower @ Mines Wellness City in Seri Kembangan after its subsidiary failed to pay 90 per cent of the purchase money on time.
According to the property development and investment company, its subsidiary, Country Heights Sea Resort Sdn Bhd (CHSR), was unable to finalise the acquisition after failing to pay the RM39.69 million outstanding balance.
Maybank, the appointed licensed auctioneer of the public auction, rejected CHSR's request for an extension of time to make the balance consideration payment, Country Heights said.
"The company is unable to comply with Chapter 10 of the Listing Requirements on related party transactions by the balance consideration payment deadline of March 15, 2023. Therefore, Country Heights and CHSR are exploring all available legal options in response to the situation," it told the stock exchange recently.
CHSR entered into a memorandum of contract with Messrs Ng Chan Mau & Co Sdn Bhd in November 2022 to acquire the office tower, after bidding for it successfully at a public auction.
The RM39.69 million, or 90 per cent of the purchase price, was to be paid within 120 days of the auction sale, as per the salient terms of the memorandum.
Country Heights said that the acquisition is in line with its corporate exercise and transformation plan to increase the group's capitalisation, value, and economies of scale.
Heritage Tower is a 10-storey office building that spans 343,405 square feet (about RM174.72 per sq ft). It was developed more than 10 years ago by Heritage Lakeside Developments, a private vehicle of Tan Sri Lee Kim Yew, the founder of Country Heights.
The property was charged under a loan arrangement and was subsequently put up for auction in December 2021, by licensed auctioneer Ng Chan Mau & Co., who represented and was appointed by Maybank, as part of claiming back a loan amount.
