One good friend in Penang told me that his abandoned apartment has remained abandoned for over 10 years. This is unfortunate but the fortunate thing is that he is doing very well and thus this is manageable for him. However, I do hope that all buyers would get what they purchased even if sometimes there may be a slight delay. One such project, The Boss Service Suites (The Boss) in Klang may be revived soon. As per article in propertyhunter.com.my there is now hope for the buyers of The Boss. In fact according to the article, there were three developers expressing their interest to take over the project. The current liquidator for the project is KPMG DealAdvisory Sdn Bhd and they will be fine-tuning the terms and conditions for the revival plan.
Once this is completed, the white knight developer would have to talk to the billing bank who is currently the owner of the project about the redemption sum. When this is done, the purchasers’ association can then organise an Extraordinary General Meeting to vote on the revival plan. Currently, The Boss Purchasers’ Association has 250 members. According to the anonymous buyer who was quoted in the article, the association need at least 75 percent of members’ votes in value or 61% of members’ votes in numbers. He even said the revival plan may start within two to three months.
Background about the project. The Boss Service Suites is located along Jalan Batu Tiga Lama, Klang. It has a total of 377 units of hotel suites and 62 units of retail units providing a guaranteed rental returns of 7 to 8 percent. It was launched in 2010 and abandoned in mid-2015. According to the purchaser, it recorded a take-up rate of 80 percent before being abandoned. The construction stopped at 26th floor and by the time is was abandoned, the retail units were about 90 percent completed.
I think in this case, all parties would have to be willing to stay focused to complete it. Everyone has more to gain versus nothing from the 90 percent completed development currently. The white knight would still have to have profits. As usual, the buyers’ would also have to be convinced that the new deal would be better for them versus current. The final frontier would be the bank’s willingness to accept the proposed deal. Every party would have to give a little extra I believe. If one party is seen to be gaining the most from the deal, it’s going to be tough to proceed. All the best and hopefully everyone will see the light at the end of the tunnel soon.
written on 1 April 2017
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