A new life for abandoned project

After more than a decade, the abandoned Taman Cemerlang housing project will be revived in the next three months.

Chief Minister Lim Guan Eng said they had sought Belleview Group to revive and complete the project after discovering that the initial developer had closed shop.

He said the state could not afford to revive all abandoned projects and had to leave some of the task to private developers.

“However, we can assist by providing certain incentives so that we have a ‘triple win’ for the developer, state and purchasers,” he said.

Taman Cemerlang was abandoned in 1998 after its land owner and developer, Cekal Berjasa Sdn Bhd and Penangan Maju Sdn Bhd defaulted on its construction loan and abandoned the project. The company wound up in 1999.

The project left some 1,200 purchasers in a lurch.

Lim said the buyers had already paid between 10% and 20% of the purchase price after they signed the sales and purchase agreement in 1997.

“They have suffered much hardship through the years in terms of servicing their interest loans and rental payments.”

Lim said the project, located in the heart of Bandar Baru Air Itam, had become an eyesore, creating a negative impression of the state.

State Town and Country Planning, Housing and Arts Committee chairman Wong Hon Wai said there are 21 abandoned projects in the state and 14 have been classified as “problematic” ones.

“Among the problems associated with abandoned projects are caveats, claims from buyers and contractors, bank borrowings and other liabilities.

“Our role is to be a mediator and look for a developer to facilitate the revival of the projects,” he said.

Belleview Group managing director Datuk Sonny Ho said the project would be re-launched in October.

“The previous plan was to build 1,369 apartment units. The units we are going to build will be between 1,000 and 1,300 sq ft.

“We will reveal our new concept and design details later but we hope to complete the en- tire project in five years,” he said, adding that the project’s gross domestic value was RM400mil.

“This project will be handled by our subsidiary, Lembaman Development Sdn bhd.

“We have already made full payment of the outstanding loan to the previous chargee bank, relocated existing squatters amicably and contributed RM100,000 and a piece of land for the relocation of an Indian temple there,” he said.

Ho said the next step was to compensate the purchasers through a mutually agreed settlement scheme. - The Star

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