Putra Place sale ruled legal

KUALA LUMPUR: The High Court has decided in favour of Sunway Real Estate Investment Trust (REIT) on two legal suits brought against Sunway REIT in relation to its acquisition of Putra Place via a public auction held on March 30.

It has dismissed the suit brought by Robert Ti and Kornelis Kurniadi where they sought a declaration that the public auction of Putra Place held on March 30 was null and void because they were wrongly excluded from bidding and that OSK Trustees Bhd had contravened a condition of sale in the proclamation of sale.

In a separate suit, Metroplex Bhd had sought to set aside the sale of Putra Place, claiming that the auction held on March 30 was not a valid public auction and that OSK Trustees Bhd was not entitled to bid.

However, the High Court has allowed the application by OSK Trustees Bhd (as trustee of Sunway REIT) and Sunway REIT Management Sdn Bhd to strike out the case with costs of RM40,000 to be paid by the provisional liquidator of Metroplex on the grounds that Metroplex did not have any right to bring any legal action in relation to the public auction.

Sunway REIT Management is of the view that the decision by the High Court has affirmed that the public auction held on March 30, 2011 was a valid public auction and reiterated that Sunway REIT had followed proper procedures in the acquisition of Putra Place.

Having won the bid and having made the full payment of RM513.95mil to the chargee bank (CIMB Bank Bhd) followed by the registration of the title with the Kuala Lumpur Land Registry on April 19, OSK Trustees Bhd (as trustee of Sunway REIT) is accordingly the rightful owner of Putra Place.