New Hope for Abandoned 1 Sulaman?
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The 1 Sulaman Project was declared abandoned by the Minister of Ministry of Local Government on 24th Nov 2016. It is understood that the project was initiated in 2009 and was slated to be completed by 2012. Unfortunately, the project came to a halt in 2011, with the Platinum and Gold Towers reaching 75% and 35% completion respectively. Sagajuta (Sabah) Sdn Bhd, who is also the developer of 1Borneo shopping mall, 1Borneo condominiums and hotel and Warisan Square has since been declared bankrupt.
The initial plan for 1 Sulaman was to develop it as a mixed development project comprising 2,058 condominium units and 63 units of shoplexes in two residential towers as well as a water theme park, recreational landscape park and serviced suites. A liquidator was then appointed to revive the abandoned project after the developer declared bankrupt.
What was supposed to be an exciting and fruitful investment turned out to be a complete nightmare for the buyers when they found out that construction work has stopped, and they still had to pay the monthly instalment; draining all their resources and savings.
On December 7th, 2019, 95% of the buyers had agreed to a Court Proposed Scheme
A scheme where the buyers had agreed to pay an additional RM122 or so per square foot to complete the final 20% of the Platinum Tower.
Under the impetus of YB Datuk Jimmy Wong Sze Phin, the multi-year development project 1 Sulaman Platinum Tower has received a court order, allowing it to finally be able to kickstart and a new developer has been engaged to take over and complete the project.
However, to date, many are still left wondering about the status and progress of the development.
Some are even posing questions on when and how long it will take to complete both Platinum and Gold Towers. According to inside stories, some buyers have already spent 10 years paying for their interim interests amounting to RM80,000! Imagine thinking that you can own the unit at RM200,000 (back then), only to have paid almost half of the purchase price solely on interests.
One of the few major buyer concerns is the unexpected additional or hidden costs to bear on their bridging or term loans. Buyers would be able to seek advice from their respective banks on any possible restructuring of the loan with lower interest rates.
The buyers sincerely hope that the Government of the day will play an important role to monitor the development progress and find solutions to complete the entire project. After all, it has been 10 years and buyers are desperate and eager to get their keys.
The views and opinions expressed in this article are those of the authors and not intended to malign any company, individual or necessarily reflect the official policy or position of any agency or organization. Focal Times is a subsidiary of Maxworld Consulting Sdn Bhd, a regional organization founded by a mixture of agile and experienced corporate finance, venture capital and industrial experts. This establishment focuses on sharing current banking affairs, latest property developments and updates and more.