Legal action on Pusat Bandar Damansara deal?

Posted on | May 18, 2011

Old sale and purchase agreement being contested

PETALING JAYA: Unresolved issues surrounding a close to three-year old deal for the sale of Pusat Bandar Damansara may be contested in court, reliable sources said.

Sources said that while one party was claiming it had the right to enforce an old sale and purchase agreement (SPA), the vendors believed that the said agreement wasn’t valid anymore for a number of reasons. Among them was that the valuation of Pusat Bandar Damansara had changed significantly since the SPA was signed. Furthermore, the SPA had not been acted on by both parties for a long time, the sources said.

Johor Corp (Jcorp) owns nine of the commercial blocks that make up Pusat Bandar Damansara. Built in 1981, Pusat Bandar Damansara, also known as Damansara Town Centre, plays host to a handful of corporate headquarters as well as government organisations, including the Ministry of Housing and Local Government and the Department of Immigration.

According to a business weekly report earlier this year, Jcorp had entered into a deal to sell land and buildings in Pusat Bandar Damansara to Malton Bhd’s executive chairman Datuk Desmond Lim Siew Choon.

The value of Pusat Bandar Damansara may have changed significantly

That deal was said to be valued at RM700mil. However since then, Pusat Bandar Damansara has been earmarked as one of the proposed mass rapid transit (MRT) key stations and indications are that the property is now worth much more than that.

The weekly business report had stated that JCorp was now rethinking the sale of its Pusat Bandar Damansara land and that some top officials in JCorp have been told to look into the possibility of rescinding the deal.

Despite its asset-rich status JCorp is a conglomerate that counts over 200 companies in its stable, including five listed companies and a real estate investment trust JCorp is facing a problem of having to settle RM3.6bil in debt that is coming due.

- Malaysia Property News

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