KUALA LUMPUR: Ho Hup Construction Company Bhd and its 70% owned Bukit Jalil Development Sdn. Bhd (BJD) have reached an amicable settlement with Malton Bhd over the developmental rights of the 60-acre land in Bukit Jalil.
Ho Hup said on Tuesday they had reached a settlement with Malton's unit Pioneer Haven Sdn. Bhd and agreed to discontinue its appeal to the Federal Court.
Ho Hup would also "withdraw the suit and any ancillary matters related thereto without admission of any liability and with no order as to costs and no liberty to file afresh, inter alia, upon the execution of the supplemental agreement".
The company said the settlement saw two key variations to the joint development agreement signed more than two year ago.
Under the variations, the joint development would be on 83.3% or 50 acres of the Bukit Jalil land instead of the entire 60 acres.
The remaining 16.7% or 10 acres would be developed by BJD. Of the 10 acres, it said about 5.9 acres of land had approved development order based on plot ratio of 3.09.
"Parcel A consists of an office tower and shop offices. The balance of BJD's land measuring approximately 4.1 acres and with a minimum of 139,321 sq metres in gross floor area is earmarked as development for high rise residential units," it said.
BJB would also be entitled to 18% instead of 17% of the estimated gross development value, subject to a minimum of RM220mil.
In addition, Pioneer Haven agreed to pay for and on behalf of BJD and Ho Hup towards the servicing of monthly interests and the redemption of the secured loan of RM75mil from Insas Credit & Leasing Sdn Bhd and the payments would treated as an advance of part of BJD's entitlement.
Pioneer Haven also agreed to help BJD secure bank financing of up to RM20mil to develop the latter's land.
By The Star
Tuesday, July 3, 2012
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