This article first appeared in The Edge Financial Daily, on March 15, 2016.
KUALA LUMPUR: Mah Sing Group Bhd, the country’s second-largest property developer by sales value, said it will discuss with Great Doctrine (M) Sdn Bhd to renegotiate the terms of the sale and purchase agreement (SPA) for the proposed acquisition of a 85.43-acre (34.57ha) piece of land in Sultan Salahuddin Abdul Aziz Shah (SSAAS) golf course in Shah Alam, Selangor, for RM327.48 million or RM88 per sq ft.
In a statement yesterday, Mah Sing said its unit Enchanting View Development Sdn Bhd had proposed a time frame of six months for the said discussion and renegotiation, which is in line with the terms of the SPA.
In a filing with Bursa Malaysia, Mah Sing said Enchanting View had requested for a further meeting to discuss and renegotiate the terms and conditions of the sale and purchase transaction with a view to reach an amicable settlement or alternative arrangement on the transaction. “Material developments from the discussion and renegotiation will be announced in due course.”
Mah Sing on March 12, 2014, signed a SPA with Great Doctrine for the proposed acquisition of the portion of prime land in SSAAS. It had proposed to develop the land into an exclusive enclave of gated, guarded, landed and high-rise residences, including super link, linked semi-detached, semi-detached, bungalows and serviced apartments.
The proposed development was estimated to have a potential gross development value of RM2.5 billion and was slated for launch in 2016.