The Court Proposed Scheme to rescue the 1,008-odd 1Sulaman abandoned apartments and some shop lots by asking the buyers to cough out an additional RM130 per square foot to complete the final 20 per cent of the project has hit a wall.
The project that started in 2009 and was supposed to have been completed in 2012, ground to a halt around 2011 with only 80 per cent completed.
The High Court Convened Meeting of the Scheme Creditors of the insolvent developer Sagajuta (Sabah) Sdn Bhd to rescue the project was held at a hall at UMS last Thursday.
The registration for eligible voters from bona fide buyers and their proxies took hours starting at 2pm.
Liquidator Datuk Tee Guan Pian, appointed by the High Court over the liquidation of the insolvent developer Sagajuta (Sabah) Sdn Bhd, was seeking hard to garner 75 per cent votes of the buyers to approve the rescue effort but had to defer the process due to objections.
The appointed white knight rescuer was Excel Glamour Housing Sdn Bhd (Company No. 1055213-U), a company incorporated in Malaysia and having its address at No. 62, Jalan Emas 7, Bandar Sunai Mas, 42700 Banting, Selangor, or its appointed nominee Fasa Harmoni Sdn Bhd (Company No. 630728-P) a company incorporated in Malaysia and having its address at B-03-10, 3rd Floor, Block B, Warisan Square, Jalan Tun Fuad Stephen, 88000 Kota Kinabalu, Sabah.
Some buyers questioned why and on what basis the firm was appointed without any open tender, besides how the RM130 per square foot profiting the white knight was calculated.
If successful in garnering 75 per cent votes of the buyers to approve the rescue effort, the buyers’ respective sale and purchase agreements entered into between Sagajuta (Sabah) Sdn Bhd and them, being the purchasers in respect of the sale and purchase of their respective parcels subject to variation and modification thereof in the Supplemental Agreement, will be deemed signed pursuant to the Proposed Scheme to rescue the 1Sulaman abandoned project.
The Supplemental Agreement as set out for Condominium units and Shoplex units is deemed to be entered into by the purchasers respectively after the Court Sanction on the Court Convened Meeting, which was supposedly on June 27, and was postponed to another date.
1Sulaman was planned as a mixed development project by Sagajuta Sabah Sdn Bhd and was supposed to be completed in 2015. However, due to several issues, the building remained unfinished until 2019, leading to the developer being sued by property lots buyers.
On June 21, 2016, the Malaysian Inland Revenue Board sued the developer over its failure to settle tax arrears totalling over RM8.5 million. The Sabah Government had since declared the project as abandoned, but did little in leadership to resolve the matter.
Many of the purchasers are first-time buyers and have been paying the loans to the bank. There was a dispute whether the electrical wiring was done or were the wires stolen as the project was left abandoned.
What is certain is that buyers have to pay more to get their homes finished for them to live in, sell or rent.
Neither the new Federal or the new State Government were keen to bail them out, unlike housing projects in the past.