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Destiny sues Sime Darby Property for RM2m

March 18, 2013

By Azli Jamil

PETALING JAYA: Auto trader Destiny Auto Sdn Bhd is suing Sime Darby Property Bhd for RM2 million after the property developer demanded that the company vacate its leased business site in Subang Jaya, Selangor.

Sime UEP Properties Bhd and Sime Healthcare Sdn Bhd were also named in Destiny’s suit that was filed in Shah Alam.

The suit is the company’s response to a court order obtained by Sime Darby ordering the auto trader to vacate within three months the premises that it has been renting since 2002. The lease had been renewed every two years until the agreement was terminated in 2011.

Destiny’s CEO Mohd Khadhir Hassan said the two parties had an understanding that the lease would be renewed until at least 2020 and that the company had invested money on the site on the basis of this understanding.

“We have spent a lot of money on the site and the business and we expect to be compensated,” said Mohd Khadhir to the media last Friday.

The judgment noted that Destiny has incurred expenses and losses in developing the business and has urged Destiny to file a claim for losses incurred.

Mohd Khadhir said legally Sime Darby has the right to ask for Destiny to vacate the site but added that there were a few verba l ag r e ement s throughout the tenure of the lease that it would be renewed indefinitely or until 2020.

Mohd Khadhir said that he has taken loans to expand and renovate the place over the years, spending about RM1.7 million in total. The land owner for the site is listed as Sime Healthcare Sdn Bhd since 2009.

This content is provided by FMT content partner The Malaysian Reserve.


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