Oceanus Mall management on inability to pay 6% rental returns

KOTA KINABALU: Most retail malls in Malaysia had suffered significant downturn in business and Oceanus Mall has not been spared, according to the management of Sunsea Pavilion Sdn Bhd.

Commenting on the recent statements by owners of Oceanus Mall pertaining to the nonpayment of rentals, it said: “The company has not been able to pay the owners rentals based on 6% return on the purchase price.

“The company initiated a restructuring scheme to ensure the continued operation of the mall.

“On 29.01.2018, the High Court in Kuala Lumpur granted a restraining order to enable the company to present the scheme.

“Instead of hearing out the company, the owners and their lawyers applied to set aside the meeting and refused to consider the restructuring. As a result, the scheme has broken down.

“Subsequent to the scheme collapsing, the company has returned the units to the owners to manage themselves and they are free to get tenants which can pay a rental based on a 6% return,” it said in a press statement yesterday.

Sunsea Pavilion Sdn Bhd also said this was a commercial venture where both owners and the company desired a profitable outcome.

“The company has paid out far more to the owners than what was collected from the tenants and continues to subsidise the mall for a long period of time.

“Unfortunately, the company is unable to deliver the result and the owners must take proactive steps to mitigate their losses.

“The company is reviewing if it is possible to present an alternative scheme to ensure the continued operation of the mall and to turnaround the mall,” it said.