The failed deal was announced by Mah Sing yesterday, which means that the RM42.67 million, being an 18 per cent upfront cost KFHMB paid earlier, has been forfeited.
Mah Sing also said that it has found a new buyer for the property in the form of T.S. Law Realty Sdn Bhd.
This is the second property deal that KFHMB has pulled out from. Last week, it had aborted its pact with YNH Property Bhd to buy the proposed 45-storey Menara YNH for RM920 million.
The property, which is yet to be built, is located on Jalan Sultan Ismail, Kuala Lumpur.
YNH had said that it was seeking legal recourse against KFHMB for backing out of the deal but the latter refuted, saying that their pact "was not legally binding".
Mah Sing, in its filing to Bursa Malaysia, said the deal was terminated after Prompt Symphony Sdn Bhd, a special purpose vehicle (SPV) set up by KFHMB and an Australian firm, failed to pay the balance of the agreed price.
Mah Sing, through wholly-owned Star Residence Sdn Bhd, had signed the sale and purchase agrement with Prompt Symphony in late November 2007.
Prompt Symphony is an 80:20 SPV set up by KFHMB unit and Autron Corp Ltd. It originally planned to buy The Icon, which measures 278,182 sq ft and will have 301 car park bays.
Prompt Symphony also signed with Maxim Heights Sdn Bhd, another Mah Sing subsidiary, to buy The Icon Mont' Kiara for RM285.4 million.
Mah Sing said that T.S Law Realty will pay RM226 million for The Icon Jalan Tun Razak's 20-storey East Wing.
"The Icon Jalan Tun Razak is the first purpose built grade 'A' office building in the vicinity of Kuala Lumpur City Centre to be completed with certificate for occupancy issued in 2009," it said.
Overall, the office building has more than 500,000 sq ft of lettable office space.
By Business Times (by Zuraimi Abdullah)
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