Sentoria Group Berhad has announced that Sentoria Langkawi Sdn Bhd, a 75% owned subsidiary had received a copy of the notification letter from Affin Bank Berhad informing that RM28.9 million of the partial lease fund has been returned by the land owner Lembaga Pembangunan Langkawi.
The refund is supposedly the partial lease premium pursuant to the purported termination of lease agreements, under the agreement, LPL was to lease approximately 70 Acres of Malay Reservation Land located at Bandar Padang Mat Sirat, Kampung Kok Langkawi District of Langkawi, Kedah for a lease premium consideration of RM30.4 million with 90 years lease.
Also another lease agreement between SLSB and LADA to lease approximately 50 acres of Malay Reservation Land located at Tempat Bukit Tekoh, Tempat Bukit Carok Nyak Mud, Tempat Charok Nyak Mud, and Tempat Caruk Nyak Mud, Mukim Ulu Melaka, District of Langkawi, Kedah for a lease premium consideration of RM10.8 million with 90 years lease.
The total lease premium consideration for the land is RM41.3 million, the company has thus far paid RM41,382,000 with a loan from Affin of RM28,900,000 (69.84% of RM41,382,000) and the remaining RM12,482,000 (30.16% of RM41,382,000) from internally generated funds.
SLSB leased the Lands from LPL in 2014 with the intention of developing the Land into a project provisionally known as “Langkawi Geopark Resort City” and another land into a project provisionally known as “Langkawi Medical Village”.
SLSB says it has incurred property development costs and the carrying amount for the above two properties (including land lease premium and property development costs) to the tune of RM60.15 million.
The group is seeking its solicitor’s advice and if it finds the termination to be invalid, Sentoria is willing to take necessary actions to recover the costs incurred.