Sim Leisure demands settlement talks with Bandar Malaysia over scrapped Escape theme park

• Sim Leisure announced on Dec 19 that it had received a notice of termination over the project. The company signed an agreement in November 2023 to build and operate a 75-acre Escape theme park in Bandar Malaysia.

KUALA LUMPUR (Feb 19): Bandar Malaysia Sdn Bhd, the state-owned developer of the eponymous project, has been accused of breaching its agreement after scrapping a deal to develop Escape theme park.

Sim Leisure Group Ltd said it has served a letter of demand to Bandar Malaysia alleging breach of its obligations following termination of the agreement and the sale of the project site to Malaysia’s national oil and gas company Petroliam Nasional Bhd (Petronas).

The letter requests negotiations for a potential amicable settlement with Bandar Malaysia, according to a statement from the Singapore-listed firm. “The company remains committed to resolving this matter expediently and satisfactorily in the best interest of all stakeholders,” Sim Leisure said.

The letter of demand follows the sale of 486 acres of land, the site of the former Royal Malaysian Air Force base off Jalan Sungai Besi, Kuala Lumpur, to KLCC (Holdings) Sdn Bhd, a wholly owned unit of Petronas last year.

Sim Leisure announced on Dec 19 that it had received a notice of termination over the project. The company signed an agreement in November 2023 to build and operate a 75-acre Escape theme park in Bandar Malaysia.

If the negotiations fail, Sim Leisure reserves the right to take legal action including seeking an urgent injunction as well as claiming compensation, the company said in a filing to the Singapore Exchange.

Sim Leisure owns and operates the Escape outdoor adventure park in Penang, the Escape Challenge indoor park at Paradigm Mall in Petaling Jaya, and KidZania Kuala Lumpur.

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