Sunway REIT's Sunway Putra Hotel in Kuala Lumpur.Sunway REIT's Sunway Putra Hotel in Kuala Lumpur. (Image: Sunway REIT)

Malaysia-listed Sunway REIT announced on 1 April that the High Court of Malaya at Kuala Lumpur has dismissed its application to strike out a writ of summons brought against it by Metroplex, the previous owner of Sunway Putra Hotel.

Metroplex had in September 2015 filed a claim for various movable items in the hotel, including furniture and kitchen equipment, which were allegedly acquired and owned by Metroplex but not removed when Sunway REIT took possession of the property in September 2011.

In its statement of claim, Metroplex has alleged that the various moveable items were worth in excess of MYR80 million (USD21 million) as at September 2011.

An application to strike out the writ of summons was filed on the grounds that the claim by Metroplex was scandalous, frivolous, vexatious and an abuse of the process of the court, said the REIT in its statement.

The High Court has however dismissed the striking out application on the grounds that there are triable issues in the pleadings and that Metroplex should be given an opportunity to prove its claim, it added.

“The matter is now fixed for case management on 11 April 2016 for further directions from the High Court of Malaya in Kuala Lumpur in respect of the trial. The REIT’s manager is now seeking further legal advice on the matter.

“If the eventual outcome of this case is not in the manager’s favour, it would not have any impact on the distribution per unit and immaterial impact on the total asset value of Sunway REIT”, it emphasised.

Units of Sunway REIT finished the trading day 1.25% higher from its previous close on the Bursa Malaysia to end at MYR1.62.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.