Parkson Retail Asia in legal stoush over Cambodia mall failure
Parkson Retail Asia is embroiled in a legal stoush in Cambodia after a property developer failed to return a deposit for a shopping centre it did not complete on time.
Parkson was due to open a department store in a development by Hassan (Cambodia) Development Co scheduled for completion by December 31, 2016 on Phnom Penh’s Russian Federation Boulevard. But the premises were never handed over and after protracted delays, Parkson asked for its deposit and rent in advance to be refunded, alleging breach of contract.
“Following failure by HCDC (as the lessor) to remedy its breaches, PCCO terminated the lease agreement by notice to the lessor,” Parkson said in a filing with the Singapore stock exchange.
Parkson is now suing Hassan through Cambodia courts to recover the money.
Chairman Tan Sri William Cheng Heng Jem said the company plans to “vigorously pursue” its claims against Hassan.
The retailer says impairment losses in relation to the stalled development have already been booked in past years so the dispute is not expected to impact on operations or financial performance this year.