Sunway Property has confirmed that its subsidiary Umech Land Sdn Bhd has received the termination letter dated 20 October 2023 from Penang Development Corporation and that PDC had exercised its right under the Joint Development Agreement to effect an early termination.
Consequently, it has also received the RM64 million deposit paid by Umech. Sunway said that back in June 2023, the group was invited by Umech to participate in the project on a joint venture basis and after the process of due diligence on the viability of the development commenced, Sunway entered into a non-disclosure agreement with Umech.
After that Sunway entered into a Joint Venture Agreement with Umech in September 2023, and the JDA was executed between Umech and PDC in the same month.
The construction group said it respects PDC’s decision to terminate the JDA and accepts the circumstances leading to the outcome and that it had always acted in good faith, as with all other land transactions, and appreciates the action taken by PDC to reflect this.
