SBCCORP

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OTHERS SBC CORPORATION BERHAD ("SBC" OR "THE COMPANY") JOINT VENTURE AGREEMENT ("JVA") IN RESPECT OF THE JESSELTON QUAY PROJECT WITH SURIA CAPITAL HOLDINGS BERHAD ("SURIA CAPITAL") DATED 21 MAY 2013

SBC CORPORATION BERHAD

Type Announcement
Subject OTHERS
Description
SBC CORPORATION BERHAD ("SBC" OR "THE COMPANY")
JOINT VENTURE AGREEMENT ("JVA") IN RESPECT OF THE JESSELTON QUAY PROJECT WITH SURIA CAPITAL HOLDINGS BERHAD ("SURIA CAPITAL") DATED 21 MAY 2013

We refer to our announcements on 21 May 2013, 23 May 2013, 27 May 2013, 19 August 2013, 20 November 2013, 16 May 2014, 26 November 2014, 23 September 2016 and 10 December 2018 respectively in relation to the JVA. 

 

The Board of SBC wishes to announce that following the successful sub-division of the master land title of 23.25 acres of Kota Kinabalu Port Land, the Group had commenced construction on Parcel B measuring 4 acres, called the Jesselton Quay Central (“JQC”) in the first quarter of 2017. Due to the imposition of the Movement Control Order by the Federal Government which had affected the progress of the construction works, JQC is now targeted to be completed by the end of 2021. The development of Parcel A on the remaining 12.25 acres land, however, has yet to commence and is currently under the re-planning stage to take into account the prevailing market condition impacted by the Covid-19 pandemic.

 

Under Schedule 2 of the JVA dated 21 May 2013, Suria Capital is expected to receive its Fourth Payment of RM26 million in cash on 26 July 2020, being the 3rd anniversary after the Second Payment which was made following the presentation of the third-party charge in July 2017.

 

Due to the general impact of the global COVID-19 pandemic that has affected the sentiment of the tourism and property market, SBC and Suria Capital have on 29 March 2021 entered into the Seventh Supplemental Letter to the JVA (“Seventh Supplemental Letter”) to record the mutual agreement of both Parties to vary the Fourth Payment of Suria  Capital's entitlement amounting to RM26 million (“Fourth Tranche”). Part of the Fourth Tranche amounting to RM1 million had been paid to Suria Capital prior to the date of this Seventh Supplemental Letter.

 

Pursuant to the above, the Board of SBC has agreed to vary the balance of payment of the Fourth Tranche amounting to RM25 million to be paid or settled by Jesselton Quay Properties Sdn Bhd, a wholly owned subsidiary of SBC which the rights under SBC for Jesselton Quay Project had been novated to pursuant to a Novation Agreement dated 26 November 2014,  together with interest on late payment pursuant to Clause 7.3 of the JVA as follows:

 

(a) Payment of RM15 million in cash in accordance with the following payment milestones:

 

Payment Milestone

Amount

Payment Date

(i)

RM5 million

31 March 2021

(ii)

RM2 million

31 July 2021

(iii)

RM2 million

30 September 2021

(iv)

RM2 million

31 October 2021

(v)

RM4 million

31 December 2021

 

(b) The balance of RM10 million in the form of the delivery of completed units of Gallery Shoppes within JQC (herein after referred to as “entitlement-in-kind”).

 

The Board of SBC having taken into consideration all aspects, is of the opinion that the variation to the Fourth Payment is in the best interest of the Company in ensuring the successful completion of JQC during this challenging time

 

This announcement is dated 29 March 2021.

 

 

 

 

 

 

 

 

 

 






Announcement Info

Company Name SBC CORPORATION BERHAD
Stock Name SBCCORP
Date Announced 29 Mar 2021
Category General Announcement for PLC
Reference Number GA1-19032021-00010