Options to revive Rhythm Avenue
in Subang Jaya
21/04/2004 The Star
Bankers for the troubled Rhythm Avenue service apartments in Subang
Jaya are conducting a feasibility study on how much it will cost to
revive the project, said Subang Jaya assemblyman Datuk Lee Hwa Beng.
“The bankers have appointed Price Waterhouse Cooper as the project
receiver in November last year. “The feasibility study is expected
to be completed by June. Hopefully, there will be some good news for
the long-suffering buyers who have lost so much money when the
project was abandoned,” said Lee. He also urged the same action be
initiated on another abandoned service apartment project, the
Newgate apartments also in Subang Jaya.
He felt that having the banks take over the project was the best
option for the affected parties. Another alternative, said Lee,
included getting the buyers to sue the developer for a refund of the
money invested but the exercise would be futile as the developer (Saujana
Utama Sdn Bhd) had no more money. “Another option is for the buyers
to group together, and in the capacity as creditors, file a winding
up order against the developer in the High Court.
“The buyers can then take over the project. “However, this method
has it limitation because it involves a huge fund and expertise to
start the project revival,” said Lee. He added that the banks, after
getting the approval from the courts, could take over the abandoned
project and initiate revival plans.
Such an arrangement had worked well in the revival of another
abandoned project, the Subang Mewah Industrial Park which had been
left dormant since 1998. Under the revival scheme - Ler Lum & Co,
the court-appointed liquidator for the developer Korakyat, had
initiated a “self-help” plan where the buyers played an active role
in financing the completion of the project.
Lee had also participated in the revival discussion for Subang Mewah
and he felt the plan could be used to revive other abandoned
Subang Mewah Industrial Park consisted of 478
single-storey, one-and-a-half-storey and double-storey factories as
well as single-storey semi-detached factories worth RM146mil.
The Rhythm Avenue service apartments started off as a well-planned
project but ended up a financial mess when the developers claimed
they ran out of money. The project was supposed to have been
completed in November 2001. However, it remains a sorry sight of
bricks and steel frames scarring the surrounding neighbourhood near
the Vision School.
It is also a major heartbreak for the 1,500 buyers who paid between
RM80,000 and RM500,000 each for a unit but had no property to call
their own even after they had diligently serviced 90% of their bank
loans in progress payments.
Some affected buyers had lodged police reports, written to former
Prime Minister Datuk Seri Dr Mahathir Mohamad for help as well as
complained to the Bank Negara, Board of Architects and the Bar
Council for suspected foul play involving architectural, engineering
and construction approvals granted to the project.