Hatten Land says most of its projects have been completed in clarification statement

Hatten Land Limited released a clarifying statement on 20th March regarding certain media articles about its projects. The group reported that most projects have been completed and delivered to their respective buyers – Hatten City 1, comprising ElementX, Hatten Place and Silverscape, Hatten City 2 with Imperio Mall and Imperio Residences and Vedro amongst them.

The development of two projects have been stalled mainly due to the Covid-19 pandemic and the corresponding restrictions and measures implemented by the government which have had a negative effect on Melaka tourism and hospitality. These two projects, Harbour City and Satori, had an agreement pending with Tayrona Capital in August 2020.

Nevertheless, Hatten Land has continued to use all reasonable efforts to help affected property buyers, including the proposed divestment of subsidiary Gold Mart Sdn Bhd and its Harbour City project with Tayrona Capital. Unfortunately, Tayrona Capital did not fulfill their obligations including the payment of consideration. The agreement has been terminated by Hatten Land in February 2023.

CDL Aries acquires two plots in Tan Chong industrial park from The Myst Singapore’s largest non-government-controlled developer, allowing for a potential 24-storey condominium tower in the up-and-coming Bukit Timah area.

The Satori project was further delayed due to the bankruptcy of appointed contractor who then ceased operations. Currently, Hatten Land is involved in a tender process to appoint a new contractor and they expect the construction work to resume in around six months after Harbour City resumes.

The board of directors claims that Hatten Land can “continue as a going concern” if certain factors – particularly the substantial value of uncompleted projects amounting to RM1.107 billion ($331.4 million) – are taken into consideration.

The group also plans to resume collection of over RM230 million receivables from customers, halted due to the agreement with Tayrona.

In order to achieve a more sustainable capital structure, MDSA Resources Sdn Bhd, a subsidiary of Hatten Land, is undergoing a strategic restructuring. The group has worked closely with their creditors and financiers to arrange a repayment plan.

Shares in Hatten Land closed at 1.6 cents on 20th March.