KUALA LUMPUR (Sept 10): A plot of freehold land owned by Country Heights Holdings Bhd (KL:CHHB) in Kajang, Selangor, is being put up for a forced court auction due to an unpaid loan.

The 2.6 hectares of land at Jalan Sinar Pagi, was put up as collateral for a S$11.5 million (about RM35 million) loan from CGS International Capital Singapore Pte Ltd, according to a Bursa filing on Thursday.

As per orders from the High Court, due to Country Heights defaulting on the loan, CGS is selling the land via electronic auction on Sept 21 at a reserve price of RM55 million.

Country Heights had tried to auction off the same plot of land on March 25, 2025, for RM69.85 million, but was unsuccessful. 

The company added that the sale of this land will not affect the company’s day-to-day operations, other than losing ownership of the land.

Country Heights is consulting its legal team for any legal or commercial options regarding the auction.

This loan default and forced auction of the land is the latest of Country Heights' financial struggles, having reported losses for the last seven quarters.

In the quarter ending Aug 31, the company posted a net loss of RM6.99 million on revenue of RM6.53 million. 

The company has also changed its financial year-end from Jun 30 to Dec 31, extending its current financial period to 18 months.

Additionally, the company has defaulted on payments with MBSB Bank (KL:MBSB) through its indirect wholly-owned subsidiary Mines Waterfront Business Park Sdn Bhd that date back Aug 18 2023.

Country Heights’ shares were unchanged on Thursday at 15.5 sen per share, with a market capitalisation of RM50.5 million.