Ivory Properties backs out of Plaza Rakyat project

PETALING JAYA: Ivory Properties Group Bhd has abandoned plans to go ahead with the RM400 milion deal to buy the long abandoned Plaza Rakyat project, paving the way for the appointment of a new developer by Dewan Bandaraya Kuala Lumpur (DBKL).
In a filing with Bursa Malaysia, Ivory said its 65% owned unit, Ivory Place Sdn Bhd could not come to an agreement following their discussion to extend the conditions precedent period of the deal with Plaza Rakyat Sdn Bhd (PRSB), the appointed receiver and manager of the development.
"Accordingly, the agreement has been terminated, both Ivory Place Sdn Bhd and PRSB have acknowledged and will observe the terms and conditions therein to come to a satisfactory conclusion arising from the termination of the agreement," it said.
As recent as early last month Ivory Properties had been confident of an amicable deal with DBKL which had openly said in Juen that it did not recognise the appointment of Ivory Properties to revive the project.
Kuala Lumpur mayor Datuk Seri Ahmad Phesal Talib had said that he was awaiting the completion of the arbitration between DBKL and PRSB to appoint the new company, declining to name the new company.
The arbitration revolves around whether DBKL had the right to terminate the joint-venture agreement (JVA) and lease agreement with PRSB on the Plaza Rakyat project in 2010.
In September 2013, Ivory Properties had entered into a conditional acquisition and rehabilitation agreement with PRSB to revive the commercial project, which was abandoned in the aftermath of the 1997/98 Asian financial crisis, with a revised gross development value (GDV) of RM8 billion.