MNACT settles Festival Walk insurance claim for $58.3m

The agreement comprises two payments.

Mapletree North Asia Commercial Trust (MNACT) has entered a settlement agreement with insurers on their claims for property damage and revenue loss due to business interruption in Hong Kong-based mall Festival Walk.

In a bourse filing, MNACT said the agreed settlement sum was $58.3 (HK$334.3m); of which, $14.7m (HK$84.3m) will be paid for property damage, whilst $43.6m (HK$250.0m) will be for revenue loss due to business interruption.

The payout amount for revenue loss after deducting taxes will be $36.4m (HK$207.36m).

“The amount of $3.5m, in excess over the distribution top-ups of $32.9m paid to unitholders in the third quarter of FY19/20 and the fourth quarter of FY19/20, will be distributed to unitholders as part of the semi-annual distribution for the period from 1 October 2021 to 31 March 2022,” MNACT said.

The settlement amount for property damage, on the other hand, is “capital and in nature” and “not distributable.”

Last year, MNACT received a partial insurance payment of $8m (HK$45m) for property damage in Festival Walk.