KUALA LUMPUR: Radium Development Bhd says its 80 per cent-owned Pavilion Integrity Sdn Bhd respects the court's judgement in relation to the 45-storey apartment tower project in Cheras here.
Pavilion Intergity also assured the affected buyers that the problem will be handled transparently and directly, and that they will be kept updated at every stage.
This is in response to the court's decision upholding the Court of Appeal's (COA) ruling to direct Kuala Lumpur City Hall (DBKL) to buy Lot 810, which was approved for the serviced apartment project close to Jalan Jejaka 1 and Lorong Peel to be built by Pavilion Integrity.
The Federal Court upheld the COA decision last year that quashed a development order for the construction of the apartment building by Pavilion Integrity.
It also agreed with the COA decision that DBKL must buy the land and build a road there, as gazetted in the Draft Kuala Lumpur Structure Plan.
Lot 810 was originally designated for the construction of a road to ease congestion in the area.
DBKL approved the construction of the apartment block and a smaller road measuring 20 feet wide, which was less than a third of the initially proposed road that had been gazetted in the KL draught plan and was to measure 66 feet wide.
Radium informed the stock exchange that it expected DBKL to acquire Lot 810 through a compulsory acquisition, with Pavilion Integrity receiving compensation in accordance with the Land Acquisition Act.
"The financial impact to Radium via the compensation to be received and the compulsory acquisition of the development project on Lot 810 by DBKL, is expected to include the refund and compensation of progress billings to Pavilion Integrity's purchasers, compensation to Pavilion Integrity's contractors due to termination of construction contracts, and the loss of revenue and profit from the development project," it said.
Radium said Pavilion Integrity is dedicated to coming to a just and satisfactory resolution that is advantageous to all parties.
The company is optimistic that the decision will not have a significant financial impact for the fiscal year 2023.
Radium said it will continue to focus on its strategic growth and expansion, as evidenced by the recent acquisition of two pieces of land here for RM71.8 million by its wholly-owned Radium Global Sdn Bhd.
Radium is involved in another pending material litigation, involving another 80 per cent-owned Vistarena Development Sdn Bhd.
On June 9, Vistarena was served with a writ of summons and statement of claim dated June 1, from 241 individual purchasers of Residensi Platinum OUG.