News: JAKS Given 4 Months to Complete Tower A in Pacific Star Business Hub

Mar 6, 2018

Star Media has asked JAKS Resources Bhd (JRB) to complete a 15-storey office tower (Tower A) in Pacific Star Business Hub at Section 13 in Petaling Jaya in about four months.

“JRB has on 28 February 2018 received a notice of demand from Star Media, requiring the delivery of Tower A by end of June 2018,” stated the company in a filing with Bursa Malaysia on Thursday (1 March).

Star Media has also requested JRB to respond within next seven days on whether it would be able to accomplish this within the given deadline.

“The company has instructed its solicitors to study the matter and advise on the appropriate actions,” said JRB.

In end-February, JAKS Resources succeeded in getting a temporary injunction from the High Court that prevents Star Media from getting a RM50 million bank guarantee over the delayed completion Tower A in the hub.

Pacific Star Business Hub is a mixed-use project with a gross development value (GDV) of RM1.1 billion being undertaken by JAKS’ subsidiary JAKS Island Circle Sdn Bhd (JIC). It consists of a podium, a 15-storey office tower, a 17-level building for commercial and educational purpose, two 25-storey residential blocks and a 34-storey apartment building.

In 2010, Star Media and JAKS Resources Bhd agreed to jointly develop the hub on a 24,568 sq m site owned by the former. But in August 2011, the parties revised the agreement, under which Star Media sold the land to JAKS for RM135 million in cash and in kind, namely in the form of Tower A.

To make sure that the property would be finished and turned over to Star Media on time, JAKS was required to commit to a RM50 million bank guarantee. Under the deal, Tower A must be completed within three years after JAKS obtained vacant possession of the land, or three years from the date of approval of the plans for the building, whichever is later.

It was previously reported that Tower A should have been completed and delivered in late-2015 or early-2016, as the development plan for the entire hub was approved by the Petaling Jaya City Council (MBPJ) in August 2012. Construction should have only taken three years as it commenced in end-2012. Under the latest extension, the building should have been completed on 15 February 2018.

However, JAKS Resources argue that JIC should have been given further extension to finish Tower A, as Star Media’s requested changes to the building had contributed in the delay.

Image sourced from Vivahomes

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Shaiful Safar
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