Star City project: Sedco and SUDC clarify
Published on: Friday, November 01, 2019
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KOTA KINABALU: Sabah Economic Development Corporation (Sedco) and its wholly-owned subsidiary company and property development arm, Sabah Urban Development Corporation (SUDC), clarified that they are working closely with the State Government and their joint venture partner, Skyrich Development Sdn Bhd (Skyrich), to develop a concrete and practical proposal that will resolve the long-standing issue faced by the buyers of the abandoned Star City development project (pic) here.

Sedco and SUDC made the clarification in a joint-media statement, Thursday.

“We, as much as Datuk Christina Liew, Datuk Junz Wong and Ben Chong, are well aware of the frustration and dissatisfaction faced by the stakeholders of the abandoned Star City development project.

“This issue was caused by the initial developer of the project, Asia City Property Development Sdn Bhd (ACPD), failing to complete the construction of the Star City complex due to financial difficulties. 

“This was further compounded when ACPD was wound up by an order of the High Court, Kota Kinabalu. An official liquidator was then appointed to manage and administer ACPD and its assets,” read the statement. 

“We recommend that buyers who have filed their proof of debts demand from the official liquidator compensation for any losses from the sale of ACPD’s assets.

“SUDC has also suffered financial losses as a result of this, more so as we had to demolish the abandoned structure as it is no longer safe.

“Nevertheless, as a socially responsible organisation, SUDC has been tirelessly working to find a ‘white knight’ for the project over the recent years. 

“Now, we have finally found a willing and capable joint venture partner, Skyrich,” they said. 

Again, as a responsible GLC, SUDC is more than willing to meet with our stakeholders at any time to find ways to assist them with their difficult predicament. 

However, with our discussions with Skyrich still in progress, our intention was to have tangible and pragmatic solutions in hand before we meet with the buyers.

Unfortunately, the revival of this project was interrupted by a dispute spearheaded by the Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) in relation to a land of 7,200 square feet that is currently part of the Star City project. 

This dispute has resulted in a “stop work” order issued by Kota Kinabalu City Hall. 

It is reiterated that the land search conducted by us has clearly shown that Sedco/SUDC is the only registered proprietor before the JV agreement was entered into with the Skyrich Development Sdn Bhd. Because of this, the Star City redevelopment plan has been put on hold pending a decision by the State Cabinet. 

The Cabinet has entrusted the Minister of Ministry of Trade and Industry to deal with this matter and all stakeholders and parties should abide by the Cabinet decision. 

As the resolution of this protracted problem is now within our sights, we are naturally saddened to be encountering further delays.

The reinvigoration of this stalled project will not only bring closure to those who have invested but also bring about positive multiplier effects in terms of job creation, foreign direct investments and catalysing robust economic growth.  

“We strongly urge relevant stakeholders to exercise patience, be considerate and work together, not against each other, for the benefit our beloved Sabah,” they said. 


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