Sunway City Kuala Lumpur, 27 October 2023 – Sunway Property (“Sunway”) would like to confirm that its subsidiary, Umech Land Sdn Bhd (“Umech”), had on, 24 October 2023, received the termination letter dated 20 October 2023 from Penang Development Corporation (“PDC”).
PDC has exercised its right under clause 19.1.1 in the Joint Development Agreement (“JDA”) to affect an early termination. Consequently, under clause 19.1.2 of the JDA, PDC will provide a full refund of all deposit paid by Umech, amounting to RM64,602,071.82, which has been received in full by Umech today.
Back in June 2023, Sunway was invited by Umech to participate in this project on a joint venture basis. The process of due diligence on the viability of the development commenced after Sunway entered into a non-disclosure agreement with Umech on 5 July 2023.
Consequently, Sunway entered into a Joint Venture Agreement (“JVA”) with Umech on 21 September 2023, and the JDA was executed between Umech and PDC on 27 September 2023. Sunway respects PDC’s decision to terminate the JDA and accepts the circumstances leading to this outcome. Sunway has always acted in good faith, as with all other land transactions, and appreciates the action taken by PDC to