PETALING JAYA: The Penang Development Corp (PDC) will refund the deposit paid by Umech Land Sdn Bhd amounting to RM64.60mil, following the former’s termination of the joint development agreement (JDA) for the proposed development of Batu Kawan Industrial Park 2 (BKIP2).
In a filing with Bursa Malaysia, Sunway Bhd
said its 70%-owned subsidiary Umech Land had received the notice of termination of the JDA from PDC.
“Pursuant to the notice of termination, the JDA shall be terminated on the expiry of 90 days from the date of the notice of termination. “PDC will fully refund the deposit paid by Umech Land which amounted to RM64.60mil within a period of 30 days from the date of termination of the JDA.” Last month, Sunway, in collaboration with Umech Land, announced that it had signed a JDA with PDC to develop the 559-acre BKIP2.
It was reported that despite Penang Chief Minister Chow Kon Yeow, who is also PDC chairman, being supportive of the deal previously, the reason for its cancellation is the change in the majority equity structure of Umech Land prior to the announcement.
