News: Residents' GRR Lawsuit Put on Hold

Nov 7, 2017

 
The class-action lawsuit filed against the developer of serviced apartment project The Arc @ Cyberjaya has been adjourned until 9 November.

Launched in 2011, the freehold development comprises four blocks of serviced apartments and four blocks of office towers.

The 137 apartment owners filed the class action on 7 June after the developer, Maju Puncakbumi Sdn Bhd, allegedly failed to give them the rental after one year, said Vincent Lim, the lawyer representing the owners.

This comes as the owners were offered an option agreement to sign for the company’s guaranteed rental return (GRR) scheme when they inked the sale and purchase agreement.

The project offered two types of GRR schemes, one of which was for up to six years while the other was for up to 25 years with a gross rental income per annum of eight percent for the first term, of three and four years, respectively.

Aside from the return of the outstanding rentals, the owners were also seeking for an eight percent interest on the rents, agreed liquidated damages as provided in the agreement signed between the parties, general damages, and/or aggravated damages and exemplary damages.

However, Meda Inc Bhd – Maju Puncakbumi’s parent company – denied promising a fixed rental income of up to 25 years to the unit owners.

Meda noted that based on the option agreement between Maju Puncakbumi and the owners, the unit owners can exercise their option for a GRR for a fixed term of three or four years, depending on the unit, with the developer having the option to renew the agreement for up to 20 years.

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

Meda revealed that the apartment owners are claiming for the outstanding rentals of RM3.97 million, eight percent interest on the outstanding rents, agreed liquidated damages, general damages, and/or aggravated damages and exemplary damages.

The owners were also seeking for a five percent interest from the judgement until the full payment date, vacant possession of the unit, cost as well as any 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,” it said.

 

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
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True Vest Property Consultants Sdn. Bhd.
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