The class action suit against Maju Puncakbumi Sdn Bhd, the developer of the serviced apartment project The Arc @ Cyberjaya, kicked off last Wednesday (4 October).
Shah Alam High Court judge Datuk Roslan Abu Bakar has set 2 November as the decision date for the application.
The 137 apartment owners are seeking for a return of outstanding rentals owed to them by the developer, including an eight percent interest on such rentals, agreed liquidated damages, exemplary damages as well as general damages and/or aggravated damages.
Launched in 2011, the RM700 million Arc @ Cyberjaya is a freehold development that features four blocks of serviced apartments and four blocks of office towers.
During the signing of the sale and purchase agreement, the unit owners were given by Subang Jaya-based Maju Puncakbumi an option to avail a guaranteed rental return (GRR) scheme that promises up to 25-years of fixed rental income.
With an annual return rate of eight percent, the scheme is offered in packages of six, 10 or 25 years. It will see the developers looking for tenants and managing the units for the buyers.
Development project manager, Andaman Property Management Sdn Bhd (APM) previously explained that the scheme is aimed at reducing the fears of buyers on finding tenants or collecting rentals as well as ease concerns on a possible slowdown.
APM believed it could guarantee the gross rental rate since it has a leasing agreement with Multimedia University to offer the apartments as hostels for its students for up to 25 years.
The owners, however, claim that they have ceased to receive their rentals from March 2016.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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