Mah Sing seeks revised terms for buying SSAAS Golf Course land
KUALA LUMPUR: Mah Sing Group Bhd will renegotiate the terms and conditions of a 2014 agreement to buy 85.43 acres in Shah Alam, comprising a portion of Sultan Salahuddin Abdul Aziz Shah (SSAAS) Golf Course, for RM327.48mil.
This is because it was unable to fulfill the conditions precedent for developing the land into a gated and guarded community with a potential gross development value of RM2.5bil, the property developer announced to Bursa Malaysia.
Mah Sing’s unit Enchanting View Development Sdn Bhd signed an agreement to acquire the land from Great Doctrine (M) Sdn Bhd on March 12, 2014.
As conditions precedent, Enchanting View had to get the relevant authority’s approval for the change of category of land use to “building” and the express condition of the land to “residential”. It also had to obtain the authority’s consent to transfer and/or charge in respect of the land in Mah Sing’s favour.
The parties targeted to meet both conditions precedent within 12 months from the date of the agreement, with an automatic six-month extension thereafter. Howeverm in September 2015, they mutually agreed for another six-month extension of the periods for the conversion approval and consent. The final date was Monday (March 14, 2016).
Mah Sing said on Monday: “Despite the best endeavours and efforts of Enchanting View, the conditions precedent could not be fulfilled within the six-month extension for the conversion approval’s period and the consent’s period.”
Therefore, it added, the parties would enter into discussions to renegotiate the terms of the agreement with a view to reach an amicable settlement or alternative arrangement on the transaction contemplated.
Enchanting View has proposed a six-month period starting March 15, 2016 for the discussion and renegotiation.
Mah Sing shares shed 1 sen to close at RM1.31 on Monday.
