Floor plan, pric­ing is­sues trip Tiger Syn­ergy MoA

> Prosma says en bloc pur­chase could not go through be­cause of changes in spec­i­fi­ca­tions

The Sun (Malaysia) - - SPEAK UP - BY EVA YEONG

PETALING JAYA: Prosma Bhd ter­mi­nated the mem­o­ran­dum of agree­ment (MoA) to ac­quire Te­laris Gom­bak from Tiger Syn­ergy Bhd due to sev­eral changes in the project which it did not agree with.

Prosma CEO Zamri Ab­dul­lah said un­der the MoA which was signed ear­lier in June, the de­vel­oper had agreed to build 180 units of af­ford­able con­do­mini­ums sized at 1,000 sq ft each, to be sold at RM400 per square foot (psf) each.

“But dur­ing a sub­se­quent meet­ing, they came out with a let­ter say­ing that they can­not change the floor plan due to plot ra­tio is­sues and be­cause of that, the units would be sized at 800 sq ft and 900 sq ft, while the price would be in­creased to RM450 psf,” he told Sun­Biz.

Zamri said un­der the MoA, it can opt to not go ahead with the pur­chase of Te­laris Gom­bak if it is un­able to agree on the pric­ing. He also as­sured that none of the ap­pli­cants un­der Prosma’s rent-to-own (RTO) scheme are af­fected by the ter­mi­na­tion, as it had not signed any con­tracts with ap­pli­cants for Te­laris Gom­bak units.

On Mon­day, Tiger Syn­ergy told Bursa Malaysia that it had aborted the MoA with Prosma as it could not reach a con­sen­sus on the terms of the MoA dur­ing the ne­go­ti­a­tion pe­riod.

To re­cap, Tiger Syn­ergy’s whol­ly­owned sub­sidiary Tiger Syn­ergy Tim­ber Sdn Bhd had en­tered into the MoA with Prosma on June 29, 2017 with the in­ten­tion to en­ter into a con­di­tional sale and pur­chase agree­ment (SPA) for the en bloc sale of Te­laris Gom­bak to Prosma.

The en bloc sale was ex­pected to gen­er­ate some RM30 mil­lion profit to Tiger Syn­ergy over three years. The two par­ties had ex­pected to sign the SPA in Septem­ber or Oc­to­ber.

The project was to be built on 5.5 acres in Kuala Lumpur with an es­ti­mated gross de­vel­op­ment value of RM100 mil­lion. The 180 units with eight com­mer­cial shoplots were to be de­vel­oped over three years, af­ter which it would be sold to Prosma.

Prosma, the ve­hi­cle tasked to ac­quire as­sets for an RTO scheme un­der Sekre­tariat Ko­mu­niti Pre­fer Malaysia (SKPM), had planned to of­fer the units at Te­laris Gom­bak to ap­pli­cants of its RTO scheme.

The units at Te­laris Gom­bak were val­ued at RM400,000 to RM500,000 each and de­signed to cater to young earn­ers. El­i­gi­ble ap­pli­cants were ex­pected to rent the units for 30 years un­der Prosma’s RTO scheme at a rental rate of RM2,000 to RM2,500 per month.

Prosma has a strate­gic col­lab­o­ra­tion with SKPM, a com­mu­nity cre­ated on the back of a pri­vate ini­tia­tive to as­sist the gov­ern­ment in pro­vid­ing res­i­dences to 30% of the pop­u­la­tion. The RTO scheme is tar­geted at those who earn RM5,000 and above, of­fer­ing units val­ued at RM300,000 to RM500,000 each.

When con­tacted, Tiger Syn­ergy man­ag­ing di­rec­tor Shirley Tan Lee Chin main­tained that the rea­son for call­ing off the deal was be­cause the two par­ties could not reach a con­sen­sus on the terms for the MoA, with­out elab­o­rat­ing fur­ther.

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