KUALA LUMPUR: Mah Sing Group Bhd’s proposed acquisition of 20 pieces of prime freehold land in Jawi, Penang totalling 76.38 acres (30.9ha) from four separate vendors for RM42.59 million or RM12.80 per sq ft, has hit a roadblock.
The property developer is suspending further payments of the balance purchase price to Yenher Agro-Products Sdn Bhd due to a breach of agreement for four pieces of land there.
In a filing with Bursa Malaysia yesterday, Mah Sing said its unit Nature Legend Development Sdn Bhd is currently seeking advice as to its legal position and possible legal remedies for breach of the agreement.
It added that Nature Legend has also suspended the payment of the balance purchase consideration to the other vendors — Hong Lee Realty Sdn Bhd, Bor Guan Chye, Bor Chye Teik, Bor Mui Teik, Bor Chai Heng, and Tan Sook Hua — as the agreements are inter-conditional.
Currently the majority of the land is planted with oil palm trees, with parts used as a poultry farm and the remaining land under secondary jungle regeneration.
Mah Sing had in December last year announced that it plans to develop Southbay East, a gated and guarded lifestyle township, which includes link homes, linked semi-detached homes, semi-detached homes, town houses, and shops as well as a clubhouse, on the land. The group had expected to commence the project in the first half of 2015, which was to be developed over a span of three to four years, with a gross development value of some RM400 million.
This article first appeared in The Edge Financial Daily, on June 11, 2014.
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