mm2 Asia subsidiary settles rental dispute in Malaysia

The settlement also covers Segamat Central tenancy obligations in Johor.

mm2 Asia Ltd. said its subsidiary MM2 Star Screen Sdn. Bhd. has settled a rental arrears dispute with Hektar Real Estate Investment Trust for $514,700 (RM1.69m).

The case, filed in the Sessions Court of Melaka, involved claims of $196,200 (RM645,905.26) for unpaid rent at Mahkota Parade Shopping Centre. The settlement also covers obligations at Segamat Central in Johor.

The agreement includes a partial offset of the outstanding amount using an existing security deposit, along with the provision of a new deposit for ongoing tenancy.

The remaining balance will be repaid in six monthly instalments beginning in September 2025, with post-dated cheques to be submitted by 12 September 2025. A waiver of late interest charges may be granted if all payments are made on time and in full.

The settlement will be formally recorded in court during a case management session on 12 September.

mm2 Asia said that the settlement is not expected to materially impact the group’s financial results for the current fiscal year.

MM2 Star Screen will also continue operating its cinema business and has committed to meeting all obligations under the agreement.