Sunway City (Ipoh) Sdn Bhd (SCI), the subsidiary of Sunway Bhd, received a letter from the Perak State Secretary notifying them that the development agreement signed on 11th September 1997 has lapsed.
According to the letter, the Perak state government has requested SCI to return the undeveloped portion of land. The size of the undeveloped land was not mentioned in the letter.
Currently, SCI is jointly developing Sunway City Ipoh with Yayasan Perak and the Perak state government.
With an estimated Gross Development Value (GDV) of more than RM1 billion, Sunway City Ipoh is nestled on a 1,346-acre site, of which only 700 acres were the net land for the development. The Lost World of Tambun theme park is also located within this township.
Last year, the firm announced the launching of the Lost World Outlet Mall, serviced apartments and a hotel, which will be developed within the next three years. These projects have an expected GDV of RM500 million.
Pertaining the letter, Sunway Bhd said that it would dispute the notice and refer the matter to arbitration.
According to Sunway Bhd, the said notice is not expected to have any material effect on the earnings per share and net assets per share of Sunway for the financial year ending 31 December 2016 and beyond.
Image: Sourced from Sunwayproperty.com
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
