CapitaLand gains approval to list integrated shopping mall business

CapitaLand gains approval to list integrated shopping mall business

By Ng Baoying,

A man walks past a CapitaLand advertisement in Singapore. (file pic)

SINGAPORE : CapitaLand has gained shareholder approval for plans to list its integrated shopping mall business CapitaMalls Asia, paving the way for its listing by the end of the year.

The new unit will have a portfolio of 86 retail properties valued at S$20.3 billion located across five countries in Asia.

CapitaLand shareholders took time out on Friday morning for an extraordinary general meeting on the group’s plans to list its integrated shopping mall business.

While it was clear that the management enjoyed a nice rapport with investors, there were still some concerns to address.

During the hour-long meeting, shareholders raised questions ranging from the exact dividend payout resulting from the sale, to concerns over a possible conflict of interest between the businesses.

Most shareholders Channel NewsAsia spoke to said they were very satisfied with the responses they received.

“We are glad that as a shareholder, we are given overall view of it (and have) better understanding after the meeting. Things like what will CapitaLand be left with after listing the CapitaMalls Asia… (were) addressed,” said Michael Khoo, a CapitaLand shareholder.

“I’m here to hear about the future prospects, how is it going to be. I think this listing is good, because by having capital, they can make purchases,” said CapitaLand shareholder Teong Chin Poh.

On the special dividend payout, CapitaLand said it would depend on several factors, including the proceeds from the listing and the performance of the CapitaLand Group.

The company also said there would be no impact on the existing trusts that it owns because CapitaMalls Asia is just the new name for an existing retail subsidiary, CapitaLand Retail.

CapitaLand currently also operates CapitaMall Trust (CMT), whose portfolio includes Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura and The Atrium@Orchard.

CMT also owns a 20 per cent stake in CapitaRetail China Trust (CRCT), the first pure-play China retail REIT listed on the Singapore Exchange. - CNA /ls

Source : Channel NewsAsia - 31 October 2009

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Condo’s clerk ordered to return $2.2m

Condo’s clerk ordered to return $2.2m
Man in civil claim also under criminal probe for reported fraud
By K. C. Vijayan, Law Correspondent

Mr Chew is said to have taken West Bay’s management and sinking funds meant for upgrading and other works. — ST PHOTO: SHAHRIYA YAHAYA

AN ACCOUNTS clerk was ordered to return some $2.2 million that he took over 18 months from a condominium management office, where he had worked since May 2003.

Mr Chew Swee Siong, 30, did not show up in court to contest the High Court claim brought by the West Bay Condominium management committee. He was served with court papers last month.

The police told The Straits Times yesterday that Mr Chew is also under criminal investigation for the reported fraud.

On Thursday, Assistant Registrar Leong Weng Tat ordered Mr Chew to pay up after having heard earlier from West Bay’s lawyer, Mr Leslie Netto, in the condo’s civil claim.

Mr Chew was also ordered to pay damages and costs to be assessed later. It is believed he had gambling debts.

According to court documents filed, Mr Chew’s duties at the condo included taking charge of all cheque books, fixed deposit receipts and other documents such as bank statements, payment vouchers and correspondence files in relation to the accounts of the condo management.

As the sole employee in charge of the condo’s finance accounts, he was also responsible for collecting, recording and banking all funds received by the condo.

He had the task of preparing the accounts in the annual audits for the annual general meetings, as well as updating and maintaining accounting records.

The 15-year-old condo in West Coast Crescent, in Pasir Panjang, has 318 units. According to the management committee chairman, Mr Chew had cleaned out the condo’s management and sinking funds meant for upgrading, repair and maintenance, and paying contractors for work done.

The matter came to light in December 2007 after a new management committee took over. The chairman, Mr Jaffar Hassan, said yesterday: ‘When we took over, there was just $1,200 left in the bank account for the condominium’s upkeep.’

Mr Jaffar’s team hired forensic accountants to trace how the money was taken in the 18-month period from June 2006. A police report was also lodged.

Among other things, it emerged that Mr Chew opened an additional bank account in the condo’s name without getting authorisation from the committee.

According to court documents filed, he forged signatures to make cheque payments to himself. Cheques were meant to be signed by two office-bearers of the management committee.

Mr Jaffar said the committee was saddled with unpaid bills for cleaners, security guards and other contractors amounting to about $300,000.

There was also an unusable lift that needed $21,000 to repair.

Mr Jaffar said a general meeting was called and residents agreed to each contribute six instalments totalling $2,400. The contributions allowed the condo to continue with its upkeep.

He said: ‘We had to move this at a very difficult time as there was a turnaround with an economic downturn.

‘I hope the lessons learnt at West Bay will serve to make others more aware in the management of their estates.’

How condos protect their funds
SOME managing agents of condominiums here are not allowed to sign on cheques to make payments on behalf of the estates they run. Such duties are usually entrusted to the estate’s management councils. Usually, at least two signatures - that of the chairman and treasurer or secretary - are needed for cheque payments.

It is a safeguard against possible misappropriation of funds by managing agents, said Mr Vijayen Nair, a property manager from Philip Motha Property Management, which runs about 30 condominiums and commercial buildings here.

The 52-year-old, who manages The 101 complex - a residential and commercial building in Beach Road, keeps the cheque books to the estate’s funds under lock and key. His employees have to present invoices and purchase orders for him to verify before he writes the cheques. They will then get the necessary signatures from the estate’s council members. ‘If any money goes missing, I become personally liable,’ he told The Straits Times.

Mr Chan Kok Hong, managing director of CKH Strata Management which looks after 95 condominiums, said his firm has become increasingly reliant on Internet banking to keep tabs on the money that goes in and out of an estate’s fund. ‘It’s faster to track this way. With Internet banking, I can verify almost immediately that the money has been deposited, rather than wait for the bank slip at the end of the month.’

Both he and Mr Nair stressed the importance of dilligence when documenting evidence of transactions. Mr Chan said council treasurers should ’scrutinise the accounts, ask a lot of questions and sign off on all documents’ to avoid fraud being committed.

KIMBERLY SPYKERMAN

Source : Straits Times - 31 October 2009

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