Mapletree North Asia Commercial Trust settles with insurers for HK$334m over damage to Festival Walk mall
MAPLETREE North Asia Commercial Trust RW0U : RW0U 0% has entered into a settlement agreement with insurers on the damage to its Festival Walk mall in Hong Kong's Kowloon Tong during the protests in 2019. The total settlement amount agreed was HK$334.3 million (S$58.3 million).
This comprises HK$84.3 million for property damage and HK$250.0 million for revenue loss due to business interruption. Interim payments of HK$263 million have been received from the insurers to date, the manager said in a bourse filing on Wednesday (Nov 24).
The insurance settlement amount for revenue loss due to business interruption, net of applicable tax, is about S$36.4 million. About S$3.5 million, in excess over the distribution top-ups of S$32.9 million paid to unitholders in Q3 and Q4 FY19/20, will be distributed to unitholders as part of the semi-annual distribution for the period from Oct 1, 2021 to Mar 31, 2022.
The settlement amount for property damage is capital in nature and not distributable, the manager said.
Units for the trust closed at 2.94 per cent or S$0.03 higher on Wednesday (Nov 24) at S$1.05.
Anti-government demonstrators had smashed glass panels at the mall in November 2019 and set fire to the Christmas decorations, causing what was described as extensive damage.
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The trust was then unable to collect rent from Festival Walk tenants for the period when the place was closed between Nov 13, 2019 and Jan 15, 2020. The office tower at the mall was shut for a shorter time - until Nov 25, 2019.
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