'Client's account' to gain confidence

The Star 04/07/2001

A developer of a service suites project in Penang has introduced a client's account whereby payments made by purchasers are monitored by a legal firm and only released according to the construction progress.

The move by Affluent Legacy, which is developing the RM100mil Universal Hotel & Universal Penang Service Suites project in Tanjung Bungah, is to gain buyers' confidence.

Eastern Standard Property Consultants (M) Sdn Bhd consultant Teoh Hock Siew said the arrangement was to protect purchasers as many people were hesitant to invest in uncompleted projects.

Eastern Standard Property is the marketing and management arm of the project located next to the Penang Swimming Club.

"Through the client's account, the developer will not get any money as all cash, including the first 10% payment, are banked into the account managed by a reputable legal firm," he told a press conference yesterday.

The legal firm as trustees, he said, would disburse the money according to the building's construction progress.

"The project expected to be completed by 2003 has received a good response with 31% of the suites sold," he said.