News: Developers VS Buyers. Developer: We are NOT Guilty

Oct 10, 2017

 
Meda Inc Bhd slammed the claims of 137 apartment owners who have filed a class-action suit against its fully-owned unit Maju Puncak Bumi Sdn Bhd (MPSB) that it had promised a fixed rental income of up to 25 years.

MPSB is the developer of the serviced apartment project, Arc @ Cyberjaya.

Meda explained that based on the option agreement between MPSB and the owners, the apartment owners can exercise their option for a guaranteed rate of return (GRR) for a fixed term of three or four years – depending on the unit – with MPSB having the option to renew the agreement for up 20 years.

“In fact, we have terminated the GRR scheme pursuant to the option agreement for majority of the units,” it said.

In the class-action suit, the unit owners are claiming an outstanding rentals of RM3.97 million as well as eight percent interest on the outstanding rentals. Aside from these, the owners are also claiming for agreed liquidation damages as provided in the agreement, general damages and/or aggravated damages, exemplary damages, cost, five percent interest from the judgement until the full payment date, vacant possession of the unit and any other relief that the court may deem fit.

“We have already captured all the outstanding rentals amounting to RM 3.97 million, therefore, there is no financial impact in our books. Any further updates in respect of any material development of this case will be made from time to time,” said Meda.

 

Picture for illustration purposes only.

 

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my

 

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Shaiful Safar
Real Estate Negotiator
REN: 17520
True Vest Property Consultants Sdn. Bhd.
shaiful.tvpc@gmail.com
(+60) 11-32302211