KUALA LUMPUR: Hong Seng Consolidated Bhd
has proposed to settle RM63.61mil owed to its wholly owned subsidiary, AIMAX Capital Sdn Bhd, through the transfer of 184 serviced apartment units in Kajang with a total agreed value of RM62.48mil.
In a filing with Bursa Malaysia, Hong Seng said AIMAX Capital had entered into debt settlement agreements with four borrowers — Datuk Liu Han Ming, Von Victory Sdn Bhd, Chia Yan Mei and Nah Choon Jeck — for the full and final settlement of the outstanding principal indebtedness.
Hong Seng said the debt will be settled via the transfer of serviced apartments at Louvre Residence, Lebuhraya Silk, Kajang, to AIMAX Capital and/or its nominees.
The difference of RM1.12mil between the total debt and the agreed settlement value will be waived by the parties.
Hong Seng said the 184 freehold units, with a combined built-up area of 208,279 sq ft and 353 car park bays, are newly completed and received their certificate of completion and compliance on Aug 26, 2025.
Of the total, 152 units are currently vacant, while 17 units are rented out at monthly rental rates ranging from RM1,000 to RM2,700.
The remaining 15 units are rented out on a per-room basis, of which five rooms are currently tenanted, at monthly rental rates ranging from RM650 to RM900 per room.
“Upon completion of the proposed debt settlement, the properties will be held by the Group for sale and/or for rental purposes in the future,” Hong Seng said.
The group said the settlement value for the properties properties were agreed at RM300 per sq ft, below internally assessed comparable market transaction prices of about RM409 to RM664 per sq ft, giving the company potential upside from future disposals or recurring rental income.
The settlement units will be assigned to AIMAX Assets Sdn Bhd, another wholly owned subsidiary of Hong Seng, which is involved in investment holding and property investment, to streamline ownership and management of the assets.
Hong Seng said the proposed debt settlement would allow the group to recover the outstanding loans without any cash outlay, while reducing the risk of impairment from delayed or uncertain repayment.
