JAKS Resources Bhd has succeeded in getting a temporary injunction from the High Court that prevents Star Media from getting a RM50 million bank guarantee over the delayed completion of a 15-storey office tower (Tower A) in Pacific Star Business Hub.
Pacific Star Business Hub is a mixed-use project with a gross development value (GDV) of RM1.1 billion being undertaken by JAKS’ subsidiary Jaks Island Circle Sdn Bhd (JIC). It consists of a podium, a 15-storey office tower, a 17-level building for commercial and educational purpose, two 25-storey residential blocks and a 34-storey apartment building.
In 2010, Star Media and JAKS Resources Bhd agreed to jointly develop the hub on a 24,568 sq m site at Section 13 in Petaling Jaya owned by the former. But in August 2011, the parties revised the agreement, under which Star Media sold the land to JAKS for RM135 million in cash and in kind, namely in the form of Tower A.
To make sure that the property would be finished and turned over to Star Media on time, JAKS was required to commit to a RM50 million bank guarantee. Under the deal, Tower A must be completed within three years after JAKS obtained vacant possession of the land, or three years from the date of approval of the plans for the building, whichever is later.
It was previously reported that Tower A should have been completed and delivered in late-2015 or early-2016, as the development plan for the entire hub was approved by the Petaling Jaya City Council (MBPJ) in August 2012. Construction should have only taken three years as it commenced in end-2012.
However, JAKS Resources contend that JIC should have been given an extension to finish Tower A, as Star Media’s requested changes to the building had contributed in the delay of its completion.
It also added that Tower A is 95.6 percent complete, while work in the other properties “has achieved good progress” even though the entire Pacific Star Business Hub was supposed to be completed in 2016.
According to a Bursa Malaysia filing, the interim stay is effective until 7 March 2018, the date when the inter-parte injunction applications will be heard by the High Court.
Image sourced from Focus Malaysia
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