KOTA KINABALU: State-owned Sabah Development Bank Berhad (SDB) is awaiting the completion of the receivership process of the PacifiCity mixed development project in Likas here in order to look for new developers for the abandoned project.
Over the last few months, SDB said, it has been on the lookout for potential “white knights” to undertake the rehabilitation of the project which comprises both residential and commercial developments.
“SDB is currently in the midst of winding up the borrower (Pacific Sanctuary Sdn Bhd),” it said, in a statement on Friday (Oct 11).
“And once the winding-up order is obtained, a private liquidator will be appointed to work with potential white knight(s) to rehabilitate the project,” the bank added.
In response to PacifiCity Project Purchasers Welfare Association (P3WA), SDB it also sympathises with the purchasers’ predicament but explained that it too, has to date, recorded losses in this project in excess of RM200mil.
The statement comes after the P3WA issued a warning earlier Friday that it was contemplating taking legal action against SDB for negligence, citing the latter was obliged to look after the safety of the property.
This was because, according to P3WA spokesman Datuk Seri Winston Liaw, of SDB’s decision to initially appoint an administrator but later terminate its services.
Liaw said the property still belonged to SDB as the purchasers have yet to obtain the occupancy certificate.
In response to the contention over the administrator, SDB said it has no record of any such appointment having been made.
“SDB would also like to put on record that SDB has a charge over the security land and is not the landowner.
“SDB has not taken over the PacifiCity project nor has SDB assumed any obligation in respect of the land or the project,” it said.
The bank added that it was not privy to the sale and purchase agreements entered into by the purchasers with the landowner and the developer of the PacifiCity project.
“Hence, any damage to their units would best be referred to the developer, Apex Juta Sdn Bhd, which is now in liquidation under the Insolvency Department,” SDB said.
The PacifiCity project is a mixed development, which consists of shop units, office spaces as well as residential units, and was originally slated for completion in 2018.
The project has, however, encountered problems and was delayed since then and was eventually officially declared an abandoned project by the state Local Government and Housing Ministry on May 2.
The Pacific Heights Condominium is the only part of the project that has been completed, with the buyers appealing for the issuance of the occupancy certificates.
