mm2 Asia’s Malaysia unit settles dispute with landlord over unpaid rent, other charges
[SINGAPORE] A Malaysian unit of beleaguered entertainment group mm2 Asia has settled a dispute with its landlord, Hektar Real Estate Investment Trust, over unpaid rent and other charges for its movie theatres in Melaka and Johor.
In a bourse filing on Wednesday (Sep 10), the group said that its subsidiary MM2 Star Screen had reached an “amicable settlement” with Hektar totalling about RM1.7 million (S$516,350).
The matter relates to the company’s cinemas in Mahkota Parade Shopping Centre in Melaka, for which Hektar had initially sought a sum of RM645,905.26, and Segamat Central in Johor.
The amount will be partially offset by an existing security deposit, and the balance will be paid over six monthly instalments from September 2025. If all the payments are made on time, late interest charges may be waived.
The parties will return to court on Sep 12 to formally record the settlement terms.
The group does not expect the matter to have any material impact on its results for the current financial year. “MM2 Star Screen continues to operate its business and is committed to fulfilling its obligations under the settlement,” it added.
Shares of mm2 Asia closed S$0.001 or 25 per cent lower at S$0.003 on Wednesday, before the announcement.
