Axis Real Estate Investment Trust is suing a former tenant at Axis Steel Centre @ SiLC in Nusajaya, Johor to recover unexpired future rental payments amounting to RM105.4 million.
The summon arose when Yongnam being a tenant of Axis-REIT at Axis Steel Centre @ SiLC, in Johor failed to adhere to the lease agreement, on 23 December 2022 and 8 February 2023, the trustee commenced civil actions against the company and the Corporate Guarantor respectively in respect of unpaid rental and other charges due and owing under the Lease agreement amounting to RM8,456,194.20.
After offsetting the sum of RM5,918,214.00 which represented the security deposit the sum outstanding has accordingly
been reduced to RM2,537,980.20. In addition, Axis also commenced a distress action against YESB on 6 March 2023 in respect of the unpaid rental for January and February 2023 amounting to RM2,345,738.00 and had obtained a writ of distress dated 13 March 2023.
Due to the continuing default in rental payments, Axis issued a termination notice to Yongnam to terminate the lease agreement
Axis as claims against Yongnam and Yongnam Holdings as guarantor jointly and severally:
(a) the unpaid rental for the period of March 2023 to 7 June 2023 of RM3,792,276.43;
(b) the compensation charges of RM703,966.14 as at 7 June 2023 and continuing on the sum of RM3,792,276.43 at the rate of 1.5% per month on daily basis from 8 June 2023 until the date of full and final realisation;
(c) the amount equivalent to the rental for the whole unexpired period of the lease term from 8 June 2023 until 29 December 2029 as agreed liquidated damages of RM105,396,516.60;
(d) the compensation charges on the sum of RM105,396,516.60 at the rate of 1.5% per month from 8 June 2023 until the date of full and final realisation;
(e) the legal charges and reimbursements as at the date of filing of the writ in the sum of RM236,954.77;
(f) costs on a solicitor-client basis; and
(g) such further and/or other relief which the Court deems fit and proper.
