Highlight Ivory Properties terminates Plaza Rakyat deal

by **Cals** Thu 07 Aug 2014, 01:04

Highlight Ivory Properties terminates Plaza Rakyat deal

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Wednesday, 06 August 2014 19:03

KUALA LUMPUR (Aug 6): Ivory Place Sdn Bhd, a 65%-owned unit of Ivory Properties Group Bhd has terminated its acquisition and rehabiliation agreement (ARA) with Plaza Rakyat Sdn Bhd.

In a filing with Bursa Malaysia today, Ivory said Ivory Place and Plaza Rakyat Sdn Bhd (PRSB) "could not come to an agreement following their discussion to extend the conditions precedent period".

"Accordingly, the ARA has been terminated, both Ivory Place and PRSB have acknowledged and will observe the terms and conditions therein to come to a satisfactory conclusion arising from the termination of the ARA," it said.

In September 2013, Ivory Place signed the ARA with Plaza Rakyat to acquire the development rights from the latter for the 15.3-acre parcel in Jalan Pudu for RM400 million.

However, the redevelopment plan on the stalled Plaza Rakyat project hit a snag when Dewan Bandaraya Kuala Lumpur (DBKL) said it did not recognise the ARA as AdamPrimus Chartered Accountants had no authority to negotiate with another party to take over the Plaza Rakyat project.

AdamPrimus is the receiver and manager appointed by the lenders of PRSB to call for a tender to rehabilitate Plaza Rakyat.

The ARA did not involve DBKL, and AdamPrimus did not obtain City Hall's approval to call for the tender.

In 1992, DBKL and PRSB entered into a joint venture (JV) to develop Plaza Rakyat.

However, PRSB ran into financial difficulties due to the Asian financial crisis and ultimately went into receivership. In 2010, DBKL terminated the JV.