KUALA LUMPUR: Eden Inc Bhd has received a compensation of RM16.71 million from the government for the compulsory disposal of Eden's 6.39 hectare land in Kuantan, Pahang to make way for the East Coast Rail Link (ECRL) project.
In its filing with Bursa Malaysia today, Eden said the acquirer is Malaysia Rail Link Sdn. Bhd (MRLSB), a wholly-owned subsidiary of Minister of Finance Incorporated (MOF Inc.), which has been appointed as the asset and project owner of ECRL.
"The compulsory disposal arose as a result of the receipt from the Land Administrator of the notice to take possession of the land under section 18 of the Land Acquisition Act, 1960.
The Compulsory Disposal is expected to result in a gain on disposal of RM10.93 million," it said.
Eden said it received the RM16.71 million compensation after accepting the government's compensation awarded notice on Jan 7, 2020.
The group said in view of the said land being currently charged to the bank, the full compensation amount is payable to the said bank which is in line with the charge documents, where the proceeds is utilised to par down the remaining balance of Ijarah loan facility.
"In view of the said land being currently charged to the bank, the full compensation amount is payable to the said bank, which is in line with the charge documents, where the proceeds are utilised to pare down the remaining balance of the Ijarah loan facility," Eden said.