Pontiac-Perennial joint entities that developed Capitol will not be wound up: Court

THERE will be no winding up of the joint entities between Perennial Real Estate Holdings and Pontiac Land affiliate Chesham Properties which co-developed the Capitol integrated development project and own its hotel, retail shops, residential units and theatre.

The Court of Appeal on Monday dismissed Perennial's appeal against the High Court's dismissal earlier this year to wind up the three joint entities - Capitol Investment Holdings, Capitol Retail Management and Capitol Hotel Management - which are equally owned by Perennial and Pontiac Land (through Chesham Properties).

A Chesham spokeswoman said that the company is "pleased with the decision".

"The Court of Appeal affirmed the High Court's judgment that it would not be just and equitable to wind up the Capitol entities or to make any such orders because there is an exit mechanism available to Perennial under the respective constitution of the Capitol entities."

One exit mechanism is the option for one party to offer to sell its shares to the other at a fair value.

Perennial also responded in a statement that it and its entities "are considering their options, and will make the necessary announcements where there are material developments on this matter".

Perennial's shares closed half a Singapore cent lower at S$0.88 on Monday.