Synergy Promenade may take legal action against Felda

Menara Felda.

PETALING JAYA: Federal Land Development Authority (Felda) may face a suit from Synergy Promenade Sdn Bhd over a dispute in the RM8.3 billion Kuala Lumpur Vertical City (KLVC) project on Jalan Semarak in Kuala Lumpur.

Synergy’s management and board will decide on the possible legal action, The Edge Property reported.

The issue is over the transfer of 8ha of land, involving 16 titles, from landowner Felda to Synergy for the project.

The Malaysian Anti-Corruption Commision and police were called in to investigate the deal when it was exposed that the Felda land had been transferred to Synergy.

According to the report, Felda was set to receive RM500 million, or 10% of the total gross development value (GDV), whichever was higher.

The land was transferred to Synergy to secure funding from banks for the project.

The Edge Property quoted a Synergy spokesperson as saying the company had written to Felda’s new chairman, Megat Zaharuddin Megat Mohd Nor, for a meeting to discuss and resolve this matter amicably.

If this fails, Synergy may resort to legal remedies to claim compensation, it added.

The KLVC project includes several towers and will house a four-star hotel and provide office space.

The report said Synergy was now building a 68-storey tower. However, a report in The Star today quoted another spokesperson of the company as saying work on the RM8.3 billion project had come to a standstill following the impasse and Felda’s rejection of its proposals.

In June, the property company had filed a suit against former Felda chairman Shahrir Abdul Samad for RM100 million on claims that he had defamed the firm.

Synergy claimed Shahrir had issued statements from December last year to March this year that “misrepresented the facts” on the Jalan Semarak land transfer.

It said Shahrir’s statements had also tarnished the company’s reputation in the business field.

It was reported on Dec 21 last year that Felda was at risk of losing ownership of a strategic piece of land on Jalan Semarak, estimated to be worth RM200 million and believed to have been transferred through a “dubious deal” in 2015.

Shahrir said in January that the Jalan Semarak land was returned to Felda and that Synergy had “voluntarily agreed to return all 16 lots of land to Felda without costs, and to surrender ownership documents to register them again under Felda”.

The transfer took place after Felda Investment Corporation appointed a local company as the main developer on June 3, 2014, and awarded it full power of attorney to develop the land.

Isa Samad was Felda chairman until January this year, at which point Shahrir took over.

Shahrir resigned after the May 9 general election when the Pakatan Harapan took over the federal government.