Mapletree North Asia gets interim insurance payout for HK mall

A security officer trying to extinguish a fire set by protesters at the Festival Walk mall in Hong Kong last November. PHOTO: REUTERS
A security officer trying to extinguish a fire set by protesters at the Festival Walk mall in Hong Kong last November. PHOTO: REUTERS

Mapletree North Asia Commercial Trust has received an interim payment from its insurers for the damage to its Festival Walk mall in Hong Kong during protests in the city late last year.

A partial payment of HK$45 million (S$8.1 million) was lodged in relation to estimated claims, the trust's manager said on Wednesday night.

An assessment of the full sum that can be recovered from insurance claims is ongoing.

It will continue to pursue claims for both property damage as well as revenue loss from the interruption to operations during the mall's temporary closure.

Anti-government demonstrators had smashed glass panels at Festival Walk last November and set fire to the Christmas decorations, causing what was described as extensive damage.

The trust was unable to collect rent from tenants when the mega mall in Kowloon Tong was closed from Nov 13 to Jan 15.

The office tower at the mall was shuttered until Nov 25.

The trust's manager has said the loss of retail and office revenue during the closure is covered by its insurance policies, as is the property damage.

Earlier this year, the trust topped up its distribution to unit holders for the three months to Dec 31 by $25.8 million to make up for the impact of the mall closure on distributable income.

Mapletree Investments separately reported that its net profit for the year ended March 31 was $1.78 billion, down 18 per cent from a year earlier. This was due to lower asset revaluation and disposal gains, it said on Wednesday.

However, it recorded the highest recurring earnings in five years, at $752 million, up 5 per cent from a year earlier. Full-year revenue edged 1 per cent higher to $3.88 billion. The group owns and manages $60.5 billion worth of assets across 13 markets.

Mapletree Investments group chief executive Hiew Yoon Khong said: "We are exploring the possibility of launching more funds or Reit (real estate investment trust) platforms over the next couple of years, including a private fund comprising the current European commercial portfolio which we have already acquired."

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on June 19, 2020, with the headline Mapletree North Asia gets interim insurance payout for HK mall. Subscribe