Wisma MPL, one of the two core assets of Malaysia Pacific Corp Bhd (MPCorp), may go under the hammer in July, as the group has yet to find a buyer for the 23-storey office complex, reported The Edge.
“The auction will be in July but it’s not for the whole building as there are some private-owner units in it. It will start at RM255 million,” said a source familiar with the matter.
Located in Jalan Raja Chulan, the property comprises a 19-storey office tower sitting atop a four-storey retail podium. Completed in 1973, the property was formerly dubbed as Wisma MPI and then Wisma HLA.
Charles Ch’ng Soon Sen, chief executive officer of MPCorp, however, said the property is “still going through some legal procedures” and that the company is still looking for buyers.
“We are in talks with some parties but nothing is confirmed yet,” he said, without providing details.
In November 2013, MPCorp first revealed plans to sell off Wisma MPL to raise up cash to meet its obligation after defaulting on repaying its outstanding bank facilities to RHB Bank.
In December 2014, it was also designated Practice Note 17 status after its external auditors expressed a disclaimer opinion in its audited financial statements for financial year 2014 as well as 2015 and 2016.
The company entered into memorandum of understanding with Terra Pontus Pte Ltd in July 2016 for the RM250 million sale of a part of Wisma MPL.
The sale, however, was aborted after the Singapore firm failed to give the earnest deposit.
The sale of the property to Zitron (M) Sdn Bhd, which tendered a RM5 million deposit, did not push through after the buyer backed out of the deal.
Notably, MPCorp was given until 30 June to submit a regularisation plan to turn around its operations.
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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