Tuesday, June 14, 2011

Aeon Co. sues Aseania Development nominee for RM10m

KUALA LUMPUR: AEON CO. (M) BHD [] is seeking RM10 million in damages against D'Aseania Mall Sdn Bhd, a nominee of Aseania Development Sdn Bhd and over a dispute involving a shopping centre in Seberang Perai, Penang.

Aeon said on Tuesday, June 14 that it had initiated a legal proceeding in the High Court of Malaya, Kuala Lumpur over material breaches in the agreement with D'Aseania Mall.

To recap, Aeon had inked a lease and infrastructure agreement with D'Aseania Mall on Feb 17, 2006 where the latter, as the lessor, was to build the shopping centre.

Under the agreement, D'Aseania Mall was to build the complex according to the specifications and designs of AEON and lease the entire Complex to Aeon. The complex was handed over to Aeon upon completion of the CONSTRUCTION [] and Aeon started operations on Aug 22, 2008.

'That despite numerous notices and reminders issued by Aeon to D'Aseania over the years for D'Aseania to rectify all the material breaches in the aforesaid agreements, including failure on the part of D'Aseania to provide a registrable lease to enable Aeon to register the lease with the relevant land office and to rectify the structural defects of the complex, D'Aseania has failed to rectify the material breaches since the opening of the complex on Aug 22, 2008,' it said.

Aeon said it initiated a legal proceeding in the High Court of Malaya over the material breaches and sought damages and reimbursements exceeding RM10 million and general damages.

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