Ewein scraps plan to buy Penang land from Consortium Zenith
Ewein Zenith is developing City of Dreams twin residential blocks in the Seri Tanjung Pinang neighbourhood.
In a filing with Bursa Malaysia on Tuesday, the property developer and sheet metal fabricator said its 60%-owned subsidiary and CZ (previously Consortium Zenith BUCG Sdn Bhd) had mutually terminated their sale and purchase agreement (SPA) for the 4.4252-acre (1.79ha) land in Section 1, Tanjung Pinang.
They also agreed to release and discharge each other from the rights, liabilities and obligation contained in the SPA subject to the terms and conditions in the termination agreement.
“The parties have mutually agreed to terminate the SPA because the land alienated is approximately 2 acres only which is a substantial reduction in the size of the subject land referred to in the SPA,” Ewein said.
The announcement did not explain why the size of the alienated land had been reduced.
Ewein said within three months, CZ, which owns the remaining 40% stake in Ewein Zenith II, would refund to Ewein Zenith II the deposit of RM16.2mil with interest at a mutually-agreed rate.
It was reported that CZ would receive a total of 44.5ha of freehold reclaimed land in Tanjung Pinang from the state government for undertaking the Penang mega project.
Ewein Zenith II signed the agreement to buy the 1.79ha parcel from CZ for RM162mil in December 2015.
The following month (January 2016), Ewein’s other 60%-owned property development subsidiary Ewein Zenith Sdn Bhd inked a memorandum of agreement with CZ to grant Ewein Zenith the right to buy three parcels of land totalling 50 acres (20.23ha) at Tanjung Pinang at RM1,300 per sq ft.
The 50-acre land was earmarked for the development of the Wellness City of Dreams project, which includes a wellness resort and wellness apartments, among others.
The parties agreed for the said land to be further divided into ten parcels of land and that they would enter a separate SPA for each parcel..
Ewein noted that it had aggregated the proposal together with the proposed land acquisition inked in December 2015 and treated them as if they were one transaction, as both transactions were entered into with the same party within a period of 12 months.
Source: TheStar.com.my
Not surprised because City Of Dreams is already in shit. Forget Wellness City of dreams .
Is City Of Dream still happen, i have pay deposit 5 months ago.
Why you say so? I visit their show room in IJM Tower, it was impressing me. Very good.
I didn’t see good for this project either cause of the company itself already a shit
Zenith is associated with the feasibility study of the penang tunnel. I’m not surprised if Ewein wants to opt out from the agreement with Zenith.
@Kevin
The showroom impressed you? Still the same old cheap lounge, salesgirls with short skirts serving champagne who can’t speak proper english? C’mon lah, that’s sipeh ah beng !!! Only those ah bengs from mainland butterworth or some sangkala taiping will be impressed. Hahaha. And that Lamborghini during their road show, save it lah. By the time COD gets full approval to proceed construction (if ever that happens), that car will be a lau beh chia already!! Ewein sucksss!!!!
Is city of dream happen?
Are u here to find enemy, i am from taiping.
this show that property market has no room to grow anymore. better save cash now.
I think he more prefer to find a ‘hole’ if you have one. lolz
Good news for Tamarind tower B owners! No more building blocking the seaview! Although the big Tnb power plant next to it is still there.
@Kevin
Please read the City of Dreams page here. You will understand why I said so.
@Siew
Agreed. This is what i call desperate marketing. It doesnt impress seasoned investors. Do you ever see IJM properties , SP Setia or Mah Sing bosses desperately parading their super cars during their sales launches? Even many other smaller developers do not need to market this way. They do not need to do it but people still flock to their launches. What does this tell you about the project?
Because the tunnel plan has to be scrapped due to the disapproval from the work ministry. The planning and feasibility study is way too expensive as “ruled” by the central govt, so, money back lah i.e. Penang govt has to take back part of the lands which were “paid in kind” to Zenith.
This dream will remain a dream
This plot of land is next to Tamarind condo and the TNB substation rite?
“The announcement did not explain why the size of the alienated land had been reduced.”
Size of land reduced due to that blardy TNB substation lah…….Who the heck still want the smaller piece of land and summore next to TNB? LOL
IF PORR highway build, this piece of land will be sandwiched between PORR highway and TNB station!!!
@Lam
Nope wrong bro the plot for City of Dreams is behind Island Plaza
@Jeff
Partly correct. The tunnel has been scrapped because of no funds coming in after the Chinese party pulled out of the JV. With that there are no funds to build the 3 paired roads and the tunnel which is part of the deal for the state govt to alienate the land to Zenith.
Bro, this is another piece of land, located next to TNB station and besides Tamarind condo, that is the land they don’t want to buy now.
Nothing to do with the city of dreams project and that piece of land. That one still on-going.
The City of dream project is still on-going.
@John
Are you talking about Tanjung Bunga paired road? No go? That’s good! Good for the environment. MBPP should stop giving approvals for dense high rise development in this area. STOP IT before it’s too late!
china developer will stop participate for reclaim land cos they know after the thousand units of houses built on reclaim land will not get china people to buy now due to Beijing control on investment outside china on properties. this curb will help to save the world cos all china ppl buy houses like buy mcdonald meals only.
@Alex
Which reclaim land are you talking about?
alll the penang reclaim land project are rarget ro sell to china ppl, but now china capital control all the sell will be gone. local penang lang wher got so much bullets to spend on RM1000 sqf unit?
@Alex
Who said target only china?? Sporean cannot meh? Australian cannot meh? RM 1000/sf is only SGD300, that’s like gov HDB flat only!! Even some of the 20-year-old HDB flats in prime location Spore are more expensive than RM 1000/sf. You’re either a frog in the well or just low IQ..Hahaha!
That so called consortium does not even qualify to touch on the surface`of the projects ! What sort of consortium keeps delaying like kopitiam empty talks ?
@Sam Wt
No money lah . Its just as simple as that.