China’s Beijing Higher People’s Court has dismissed a claim filed by the original developer of Gateway Plaza against a subsidiary of office and retail real estate investment trust Mapletree Greater China Commercial Trust (MGCCT) (SGX:RW0U), the REIT announced on 23 December.
The litigation action, brought about by Beijing Bestride, alleged that there was a loan of RMB210 million (SGD44.64 million) made to HK Gateway Plaza Company Limited in June 2007. Also claimed was interest to the tune of RMB54.86 million.
Gateway Plaza is one of two properties currently in the portfolio of MGCCT.
In a judgment dated 18 December 2014, the claim was dismissed by the Higher Court as being without merit. Beijing Bestride has 15 days to file an appeal to the Supreme People’s Court of China against the judgment.
According to an official statement released by MGCCT, this is the second time that the litigation action has been dismissed by the Higher Court, the first dismissal being the ruling dated 7 December 2012.
In a prospectus filed in conjunction with its listing, MGCCT indicated that the seller of Gateway Plaza, Mapletree India China Fund, has given a limited indemnity to the REIT in relation to the litigation action.
Units of MGCCT closed the trading day at SGD0.945.