Malaysian developer terminates $1.66b project

1 Oct 2013

Mah Sing Group is terminating its RM4.3 billion (S$1.66 billion) Meridian @ Senibong project in Iskandar Malaysia, after failing to obtain written consent from neighbouring developers for the construction of road accesses.

The proposed project was supposed to feature a hotel, serviced residences, a street mall and retail podium.

On 28 May, the developer agreed to acquire the 14.1 ha site in the town of Plentong for RM365.6 million (S$141.5 million) provided shareholders consent to the acquisition and it manages to secure written consent from the developers of neighbouring projects.

While shareholders had approved the acquisition, the written consent could not be secured on Monday, the last day for the fulfilment of conditions under the sale and purchase agreement (SPA).

“Due to the non-fulfilment of this conditions precedent (CP), Mah Sing has sent a notice of termination of the SPA to the vendor in accordance with the terms of the SPA,” the group revealed.

Despite the project’s termination, Mah Sing said that it will continue to look for good landbank opportunities in the major economic zones of Greater Kuala Lumpur, the Klang Valley and Sabah.

Image: Mah Sing Group MD Tan Sri Leong Hoy Kum

 

Farah Wahida, Editor of PropertyGuru Malaysia, edited this story. To contact her about this or other stories email farahwahida@propertyguru.com.my

 

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