KUALA LUMPUR: Sunway Property today said its subsidiary Umech Land Sdn Bhd has received a full refund of its RM64.6 million deposit for the axed joint development agreement (JDA) with Penang Development Corporation (PDC).
Sunway Property explained in a statement today that back in June 2023, it was invited by Umech to participate in this project on ajoint venture basis.
The process of due diligence on the viability of the development started after Sunway Property entered into a non-disclosure agreement with Umech on July 5, 2023.
Consequently, Sunway Property entered into a joint venture agreement with Umech on September 21, 2023, and the JDA was executed between Umech and PDC on September 27, 2023.
"Sunway respects PDC's decision to terminate the JDA and accepts the circumstances leading to this outcome. Sunway has always acted in good faith, as with all other land transactions, and appreciates the action taken by PDC to reflect this," the company said in its statement on the termination of the agreement to develop 559 acres of industrial land in Batu Kawan.
The PDC Board, in a statement on October 17, said it had decided to terminate the JDA with Umech Land over the controversial sale of PDC-owned land in Byram, in the Seberang Prai Selatan district.
While finding no issue with the selection process of Umech Land and the commercial aspects of the JDA, including its benefit to PDC, the PDC Board said it could not accept the change in the equity structure of Umech Land, which led to a change in the party controlling and leading the BKIP2 project, without prior notice and official approval of the board.