Hatten Land to come up with alternative options for Gold Mart divestment

Tayrona Capital Group Corp has shared certain bank documents with Hatten Land to prove its availability of funds for its payment consideration of US$83 million, Hatten Land said on Thursday (Jan 20) in response to queries from the Singapore Exchange.

In September last year, property developer Hatten Land said it has not received the payment from Singapore-based Tayrona for the proposed divestment of wholly owned Malaysian unit Gold Mart.

When asked about alternative options should the transaction fail to follow through, Hatten Land said that its choices are to resume construction activities for Project Harbour City and continue to look for potential investors

"As at the date of this announcement, the company is talking to a few parties, but nothing is concrete at this point of time," it added.

On whether the company is able to continue as a going concern, Hattens Land said that it has about RM1.15 billion (S$369 million) worth of unsold completed properties, including those of Gold Mart, as at market value on June 30, 2021.

It also noted its recent entry into blockchain as well as the re-opening of interstate and overseas travel, the latter of which will contribute to the recovery of its hospitality and property-related activities.

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Hattens Land also noted: "The company has worked closely with its lenders to extend the repayment obligations for its borrowings. This has helped align the group's repayment requirements with the current business climate and channel its cash flow for operation purposes."

"In addition, the company is also currently working to secure a refinancing package for US$20 million and US$25 million. The US$25 million are secured against an asset owned by related party of the borrowing entity with an estimated collateral valuation of approximately two times of the loan amount and the US$20 million are secured against, among others, assets owned by one of its subsidiaries and shares of the company provided by related party of the borrowing entity," it added.