Hatten Land to pay China Construction Yangtze River RM1.5m

PROPERTY developer Hatten Land announced on Monday that its indirect wholly-owned subsidiary Gold Mart Sdn Bhd is required to pay China Construction Yangtze River Sdn Bhd RM1.5 million (S$497,000) instead of the initial RM100 million claimed by the construction company.

In May 2020, Hatten Land received a notice of adjudication for the dispute between Gold Mart and China Construction Yangtze River arising out of a construction and completion contract dated July 15, 2016 for a project in Harbour City with a value of RM818.2 million, Hatten Land said in a bourse filing. China Construction Yangtze River had claimed RM100 million against Gold Mart, the property developer added.

In a separate bourse filing on Dec 15, Hatten Land subsequently announced that an adjudicator had been appointed.

The RM1.5 million that Hatten Land is required to pay includes RM1.4 million for the cost of contract works calculated based on the amount claimed by the contractor less liquidated damages and non-renewal performance of bond, interest at 5 per cent per annum on the cost of contract works from the decision until payment, RM150,000 for the cost of adjudication and RM30,500 for the reimbursement paid by the contractor to the Asian International Arbitration Centre.

In Monday's bourse filing, Hatten Land said that it has no objection on the decision determined by the adjudicator, and noted that the contract has since been terminated.

Hatten Land also said that the payment is not expected to have any material impact on the financial performance of the company for the financial year ending June 30, 2021.

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As at 9.16am on Monday, shares of Hatten Land were trading 10 per cent or 0.3 Singapore cent higher at 3.3 cents.