HIGH COURT DECLARED PUTRA PLACE PUBLIC AUCTION VALID

The High Court has decided today in favour of Sunway REIT on two legal suits brought against Sunway REIT in relation to its acquisition of Putra Place via a public auction held on 30 March 2011.

The High Court has dismissed the suit brought by Robert Ti and Kornelis Kurniadi where they sought a declaration that the public auction of Putra Place held on 30 March 2011 was null and void because they were wrongly excluded from bidding and that OSK Trustees Berhad had contravened a condition of sale in the Proclamation of Sale.

In a separate suit, Metroplex Berhad had sought to set aside the sale of Putra Place, claiming that the auction held on 30 March 2011 was not a valid public auction and that OSK Trustees Berhad was not entitled to bid. However, the High Court has allowed the applications by OSK Trustees Berhad (as trustee of Sunway Real Estate Investment Trust) and Sunway REIT Management Sdn Bhd to strike out the case with costs of RM40,000 to be paid by the provisional liquidator of Metroplex Berhad on the ground that Metroplex Berhad did not have any right to bring any legal action in relation to the public auction.

Sunway REIT Management Sdn Bhd is of the view that the decision by the High Court today has affirmed that the public auction held on 30 March 2011 was a valid public auction and reiterate that Sunway REIT has followed proper procedures in the acquisition of Putra Place. Having won the bid and made the full payment of RM513.945 million to the chargee bank (CIMB) followed by the registration of the title with the Kuala Lumpur Land Registry on 19 April 2011, OSK Trustees Berhad (as trustee of Sunway Real Estate Investment Trust) is accordingly the rightful owner of Putra Place.