More than 230 purchasers of the Kota Kinabalu Waterfront Project have engaged a team of lawyers to represent them for the recovery of outstanding rentals amount up to RM38 million and future guaranteed rentals.

Sunsea Development is the developer of the Kota Kinabalu Waterfront Project, comprising of Phase 1; Oceanus Mall, the Marriot Hotel and Pelagos Designer Suites and Phase 2; UNCHR Market - which is yet to be launched - in a joint venture with DBKK Holdings Sdn Bhd, who is the owner of the land.

The commercial units in Oceanus Mall were sold on a leaseback basis wherein Sunsea Pavilion Sdn Bhd entered into tenancy agreements with the purchasers. To date, the developer owes purchasers a staggering RM38,787,344.74 in unpaid rental as of 31 December 2017.

Calling themselves the Oceanus 5.0, represented by Datuk CK Tan, one of the group's objective is to reach out to political leaders to find solutions to the issue, including the recovery of investors' money and future rentals.

Speaking at a press conference today in Oceanus Mall, Tan said, "In 2016 we met with Datuk Mayor and briefed him on the late rental payment. We emphasised that Phase 2 of the Project (UNCHR Market) should not be assigned or even commence without settling all the outstanding rental payment for Phase 1 purchasers."

Tan then added that sometime late in 2017 or early 2018, the group believed that DBKK gave its consent to Sunsea Development to assign Phase 2 of the development to one Sunsea Development (Sinsuran) Sdn Bhd, a company of which Sunsea Development Sdn Bhd is a shareholder. It was also learned that soon after the assignment of Phase 2, Sunsea Development Sdn Bhd was wound up by the High Court of Malaysia in Kuala Lumpur.

"We are merely looking for justice. It is painful having to hear the cries and woes of the purchasers. Some of us had to sell off our houses or take out loans in hopes of securing good retirement funds from investing in this project" Tan shared.

The Ocean 5.0 group will also look into urging the Lands and Surveys Department to expedite the issuance of individual subsidiary titles to the purchasers.

Oceanus Waterfront Mall is located in one of the most prolific locations in Kota Kinabalu City along the scenic waterfront. The mall underwent a management change in 2017 to steer the mall towards stability and was buoyed by developments around it. This includes the development of a sky bridge that is currently under construction that will link the mall with Asia City.

Sunsea Development Sdn Bhd was unreachable to comment at the time while the management of Oceanus was also unavailable at the time of reporting. Property Hunter will continue to make contact and keep you up to date on this matter as it develops.