Land auctioned due to failure of developer - PMBK
Last Update: 15/05/2019
KOTA BHARU, May 15 (Bernama) -- Eleven plots of land registered in the name of Perbadanan Menteri Besar Kelantan (PMBK) will be auctioned on May 27 following the failure of the developing company to pay back its loan to the bank.
In a statement released here today, PMBK explained that the Joint Development Agreement signed between PMBK and two other companies on June 29, 2011 involved 14 hectares of land identified by the state government for the project Bandar Baru Tunjong (BBT).
It said that in line with the Land Acquisition Act 1960, the acquisition of the land previously was made by PMBK resulting in the state government subsidiary company being named as the registered owner of the land.
“A company was later appointed as the main developer which coordinated the whole development of BBT, whereas another company was appointed as the implementer and the bearer of all costs including the development and land acquisition valued at RM19.4 million at that time.
"PMBK and the two companies concerned agreed that the ownership of the land concerned was not transferred to the purchasing company but would instead be transferred directly to the purchasers of the project units later,” it said.
Taking into consideration the acquisition payment of RM19.4 million, PMBK as the registered owner allowed the company concerned to obtain the ‘third party lease without encumbrances’ from the bank to resolve the loan for reclaiming the land and subsequently starting development on the land.
According to the statement further, the company had completed the phase 1 of the development which was a Giant supermarket, while phase 2 involved a 40-story condominium which had been stalled after completing the basic foundation work.
Earlier, a notice on the sale declaration of PMBK assets had been advertised in the media on May 13 with the reserved price of RM66.7 million (current value).
The advertisement stated that the auction application on 11 lots of land was by Malayan Banking Berhad (Maybank) as the plaintiff while PMBK was the defendant.