GuocoLand unit ordered to pay RM6.4m in arbitration; completes RM50m MTN issuance

GUOCOLAND (Malaysia) Bhd's wholly owned subsidiary GLM Emerald Hills (Cheras) Sdn Bhd has been ordered to pay RM6.36 million to Barisan Performa Sdn Bhd in an arbitration proceeding over a terminated construction contract.
In a filing with Bursa Malaysia today, GuocoLand said the dispute stemmed from a contract under which Barisan Performa was appointed to carry out site clearance, earthwork and related works.
The contract was subsequently terminated, with GLM Emerald Hills maintaining that the termination was mutually agreed.
However, Barisan Performa contended that the termination constituted a repudiation of contract.
On June 16, 2025, the arbitrator awarded Barisan Performa a total of RM6.4 million.
This comprises RM1.24 million for work done and materials left on site, and RM5.12 million for loss of profit arising from what was deemed to be an unlawful repudiation.
The award also includes 5% annual interest on the sum due until full payment, as well as incidental costs amounting to RM414,487.94.
GuocoLand noted that it had previously recognised a provision of RM1.24 million, resulting in an estimated net financial impact of RM5.54 million from the award.
The company added that GLM Emerald Hills is consulting its solicitors on the next course of action, including the possibility of setting aside the award.
In a separate announcement, GuocoLand said it has completed the issuance of RM50 million in nominal value of unrated medium term notes (MTN), marking the first tranche under its RM500 million MTN programme announced in March this year.
The one-year MTN, issued today, carries a periodic distribution rate of 4.27% per annum and will mature on June 18, 2026.
Proceeds from the issuance, along with internal funds, will be used primarily to fully settle outstanding revolving credit facilities – RM7.4 million with Bank of China (Malaysia) Bhd and RM32.5 million with Bangkok Bank Bhd.
The balance will be allocated for working capital.
Hong Leong Investment Bank Bhd is acting as the principal adviser, lead arranger, lead manager, and facility agent for the MTN programme, which is part of GuocoLand's broader capital management strategy. — TMR

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GUOCOLAND (Malaysia) Bhd's wholly owned subsidiary GLM Emerald Hills (Cheras) Sdn Bhd has been ordered to pay RM6.36 million to Barisan Performa Sdn Bhd in an arbitration proceeding over a terminated construction contract. In a filing with Bursa Malaysia today, GuocoLand said the dispute stemmed from a contract under which Barisan Performa was appointed to carry out site clearance, earthwork and related works. The contract was subsequently terminated, with GLM Emerald Hills maintaining that the termination was mutually agreed. However, Barisan Performa contended that the termination constituted a repudiation of contract. On June 16, 2025, the arbitrator awarded Barisan Performa a total of RM6.4 million. This comprises RM1.24 million for work done and materials left on site, and RM5.12 million for loss of profit arising from what was deemed to be an unlawful repudiation. The award also includes 5% annual interest on the sum due until full payment, as well as incidental costs amounting to RM414,487.94. GuocoLand noted that it had previously recognised a provision of RM1.24 million, resulting in an estimated net financial impact of RM5.54 million from the award. The company added that GLM Emerald Hills is consulting its solicitors on the next course of action, including the possibility of setting aside the award. In a separate announcement, GuocoLand said it has completed the issuance of RM50 million in nominal value of unrated medium term notes (MTN), marking the first tranche under its RM500 million MTN programme announced in March this year. The one-year MTN, issued today, carries a periodic distribution rate of 4.27% per annum and will mature on June 18, 2026. Proceeds from the issuance, along with internal funds, will be used primarily to fully settle outstanding revolving credit facilities – RM7.4 million with Bank of China (Malaysia) Bhd and RM32.5 million with Bangkok Bank Bhd. The balance will be allocated for working capital. Hong Leong Investment Bank Bhd is acting as the principal adviser, lead arranger, lead manager, and facility agent for the MTN programme, which is part of GuocoLand's broader capital management strategy. — TMR

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