Mah Sing: RM285.38 mil Icon@Mont’Kiara deal called off (Nov 3, 2009)

KUALA LUMPUR: The proposed development of the Icon@Mont’Kiara commercial project, which would have been undertaken by Mah Sing Group Bhd’s unit, has been terminated following the non-fulfillment of conditions with the purchaser Prompt Symphony Sdn Bhd.

Mah Sing said on Nov 3 that its unit Maxim Heights Sdn Bhd had received written notice from Prompt Symphony about "non-fulfillment of the conditions precedent within the relevant timeframes" under the tripartite sale and purchase agreement and put and call option.

To recap, Maxim Heights had entered into the agreement with the landowner, Majlis Agama Islam Wilayah Persekutuan (MAIWP) and Prompt Symphony for the en bloc sale of a commercial building known as The Icon@Mont’Kiara to Prompt Symphony for total cash consideration of RM285.38 million.

The proposed en bloc sale was conditional upon the fulfillment of the several conditions including Maxim Heights securing the development order from the authorities for the development of The Icon@Mont Kiara.

Maxim Heights had on Oct 26, obtained a conditional approval for the development order from the authorities to develop of The Icon@Mont Kiara.

On Oct 27, Maxim Heights gave notice to Prompt Symphony that the former had obtained the conditional development order from the relevant authorities. It then requested Prompt Symphony to confirm the due diligence within seven days from the date of the notice and also to fulfil other conditions in the agreement.

However, on Nov 2, Maxim Heights received a written notice from Prompt Symphony that due to the non-fulfillment of the conditions precedent within the relevant timeframes, the sale and purchase agreement was terminated.

Mah Sing said that accordingly, the tripartite put and call option agreement, dated Nov 27, 2007 among the three parties for the sale of not less than 637 car park bays in The Icon@Mont Kiara to Prompt Symphony for RM19.9 million cash was null and void.

With the termination, Mah Sing now plans to develop fully or partly- furnished serviced suites with small built-ups of 850 sq ft, 1,400 sq ft and 1,800 sq ft.