20-F: Starbox Group Inks Tenancy Agreements for Malaysian Operations

Starbox Group Holdings Ltd. secures tenancy agreements for office spaces in Kuala Lumpur to support its Malaysian operations.

Summary

• Starbox Group Holdings Ltd., through Berjaya Steel Works Sdn Bhd, has entered into tenancy agreements with Starbox Rebates Sdn Bhd and Paybats Sdn Bhd for office spaces in Sunway Velocity, Kuala Lumpur.
• The agreements, both dated June 15, 2023, outline the terms for a two-year tenancy commencing May 1, 2023, and expiring April 30, 2025.
• The monthly rent for each Demised Premises is RM6,760.00.
• The agreements include clauses related to security deposits, utilities, service charges, fitting-out works, and termination conditions.
• Paybats Sdn Bhd and StarboxTV Sdn Bhd also entered into a tenancy agreement with Woon Chun Yin for office space in Sunway Velocity, Kuala Lumpur, commencing May 1, 2023, for a term of two years with a monthly rental of RM7,100.

Sentiment

Score: 7

Explanation: The document is a standard legal agreement, with a neutral sentiment. The information is factual and does not indicate positive or negative performance, but is a necessary step for business operations.

Positives

• Securing office spaces ensures operational continuity for key subsidiaries.
• The agreements outline clear terms and conditions, reducing potential disputes.
• The option to renew provides potential long-term stability.

Negatives

• The tenant is responsible for increased quit rent, assessment, or property taxes during the tenancy term.
• The landlord has broad discretion in changing the layout of the building.
• Failure to commence business by the Business Commencement Date results in forfeiture of deposits.

Risks

• Breach of the agreement can lead to termination and forfeiture of deposits.
• The landlord is not liable for interruptions in utility services.
• The tenant is responsible for costs associated with alterations and renovations.
• The tenant is responsible for any damage caused to the Building, Common Property and the Land.

Future Outlook

The agreements provide an option to renew for one year with a rental increment of no more than 20% or at the prevailing market rate, whichever is higher.

Industry Context

These agreements reflect the ongoing operational activities of Starbox Group in Malaysia's commercial real estate market, securing premises for its subsidiaries.

Stakeholder Impact

• Shareholders: Ensures operational stability and supports business activities.
• Employees: Provides a physical workspace for operations.
• Customers: Supports the provision of services through a dedicated office space.

Next Steps

• Tenant to comply with all terms and conditions of the tenancy agreements.
• Tenant to commence business operations at the Demised Premises.
• Tenant to maintain insurance coverage as required by the Landlord.

Key Dates

Keywords

tenancy agreement, office space, lease, Sunway Velocity, Kuala Lumpur, Berjaya Steel Works, Starbox Rebates, Paybats, StarboxTV