Mapletree North Asia Commercial Trust's manager annnounced it has entered into a settlement agreement with the insurers on the claims for property damage and revenue loss due to business interruption at Festival Walk in Hong Kong.
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The total settlement amount agreed in the sum of HK$334.3 million (approximately $58.3 million), comprises HK$84.3 million (approximately $14.7 million) for property damage and HK$250.0 million (approximately $43.6 million) for revenue loss due to business interruption. Interim payments of HK$263 million have been received from the insurers to date.
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For property damage, the insurance settlement amount is capital in nature and is not distributable. For revenue loss due to business interruption, the insurance settlement amount (net of applicable tax) is about $36.4 million. The amount of $3.5 million, in excess over the distribution top-ups of $32.9 million paid to unitholders in 3Q FY19/20 and 4Q FY19/20, will be distributed to unitholders as part of the semi-annual distribution for the period from October 1, 2021 to March 31, 2022.
