Hong Seng Consolidated Berhad has announced a significant debt settlement agreement that will see the group recover RM63.6 million in outstanding loans through the acquisition of 184 serviced apartment units in Kajang, Selangor.
The agreement was entered into on 9 April 2026 by Hong Seng’s wholly-owned moneylending subsidiary, AIMAX Capital Sdn Bhd (formerly Hong Seng Capital), with four separate borrowers.
The debt recovery involves a “full and final settlement” of the principal indebtedness, which stood at RM63,606,007.36 as of 8 April 2026. The debt will be satisfied by transferring 184 units located at Louvre Residence, Kajang, to the group.
The group has agreed to waive a differential sum of approximately RM1.12 million to facilitate the total settlement.
A key highlight of the announcement is the valuation of the properties. The settlement value was agreed at RM300 per square foot (psf).
While no independent valuation was conducted, Hong Seng’s internal assessment—referencing market data from brickz.my—indicates that comparable properties in the Kajang area are currently transacting between RM409 and RM664 psf.
By securing the units at RM300 psf, the group effectively acquires the assets at a significant discount to prevailing market rates.
The Board stated that the proposed settlement is a proactive move to mitigate the risk of impairment that could arise from delayed or uncertain cash recovery.
The Board believes this move provides Hong Seng with the flexibility to optimise rental yields and strengthen its balance sheet with tangible real estate assets.
