KUALA LUMPUR: Bandar Malaysia Sdn Bhd (BMSB) has terminated a deal with Singapore-listed Sim Leisure Group Ltd to develop an adventure theme park with accomodation, a year after announcing it.
Theme park developer and operator Sim Leisure announced it will be opening an adventure park with 70 games and activities, as well as 200 themed accommodation for guests in Bandar Malaysia in November 2023.
In a filing with the Singapore stock exchange, Sim Leisure said its subsidiary, Sim Leisure Escape, received a notice of termination on Dec 16, 2024 from the owner, BMSB.
The announcement is dated Dec 19, 2024.
As a result of the termination, the company said all intellectual property rights granted to BMSB under the agreement will be revoked.
"Additionally, BMSB is obligated to refund Sim Leisure Escape the RM350,000 security deposit within 30 days of the termination notice," it said. Sim Leisure is also seeking compensation for all the capital expenditures they have invested to date, although the exact amount has not been specified.
It said Sim Leisure Escape had also paid an advance payment of RM1 million upon signing the agreement, which was meant to be offset against minimum guarantees or other payments due to the owner.
"Since the theme park's operations had yet to commence, BMSB is required to repay this advance payment in full following the termination," the company said.
According to Sim Leisure, the financial impact of the termination, including compensation entitlements and potential legal claims, will be recognised in the financial year ending Dec 31, 2025, it added.
The announcement comes amid news that Bandar Malaysia is up for sale with the Finance Ministry looking to hive off the development which is yet to take off.
KLCC Property Holdings Bhd (KLCCP), the purported buyer of the 197 hectare land has since denied being the buyer of Bandar Malaysia, in a deal reportedly worth RM12 billion.
First announced in 2011, Bandar Malaysia, was dubbed a '15-Minute City,' with essentials close by, and integrated with vertical design and diverse transport, including the Kuala Lumpur-Singapore high-speed rail line.
Earlier this year however, Prime Minister Datuk Seri Anwar Ibrahim in a written parliamentary reply said the master plan for the Bandar Malaysia development was being reviewed by the government after it was approved in principle last year.
In December 2023, the government approved in principle the master plan for the RM140 billion development project.