KUALA LUMPUR: Mah Sing Group Bhd, which terminated its proposed RM359.56mil purchase of 425.3ha in Seremban where it had planned a multi-billion-ringgit property project, will receive a full deposit refund of RM35.96mil by Dec 31.
The property developer, which discovered that a caveat had been lodged on the land, said the vendors had offered to settle the dispute out of court by refunding the deposit to its unit Grand Prestige Development Sdn Bhd by Dec 31.
This was in consideration of Mah Sing and the vendors withdrawing all claims against each other, and with the vendors receiving all interest accrued from the deposit kept with the stakeholder.
“To avoid a protracted litigation, Grand Prestige has decided to accept the said offer. The settlement will allow RM35.96mil deposit to be refunded to Mah Sing with the vendors retaining the interest estimated to be about RM1.56mil as at Dec 20, 2015 (subject to confirmation from the bank),” Mah Sing told Bursa Malaysia on Monday.
Under the settlement, the vendors withdrew their counterclaim against Grand Prestige with no liberty of filing their claim afresh for this suit, it said.
The land sale and purchase agreement inked with the vendors - Poh Yong Cak, Lim Kim Chong and Sam Chien Kiong - on Aug 11 last year was intended to represent Mah Sing’s maiden foray into Negri Sembilan. It had expected to undertake a project with a potential gross development value of RM7.5bil on the land, with landed residences starting from RM350,000.
However, in August this year, Grand Prestige was served with a writ and statement of claim made in the Seremban High Court by seven individuals who claimed to be undivided registered proprietors/beneficial owners to the land. The three vendors were also named as defendants,
Mah Sing shares shed 3 sen to close at RM1.38 on Monday.
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