buyers protest delay in reviving projects
The Star 29/04/2004
by Darmender Singh
About 200 buyers of the stalled Rhythm Avenue and Newgate Avenue
apartment projects in Subang Jaya held a peaceful demonstration on
Sunday to voice their disappointment over the delay in reviving the
Rhythm Avenue and Newgate Avenue apartments buyers
committee chairman Pritpal Singh said they were urging the bridging
financiers to get the projects under way again.
He said those who had bought the Rhythm Avenue units
were to have received their apartments at the end of 2001 while the
Newgate Avenue apartments were to have been completed by mid-2002.
The buyers had been under financial pressure ever
since the projects were stalled as they had to pay interest on the
Those who had bought units in the 60% completed
Newgate Avenue project are paying about RM500 monthly while those
whose units in the 90% completed Rhythm Avenue project were paying
Pointing out that the buyers had also to pay rental
on the premises in which they were living now, he said a number of
them had been blacklisted by the end financiers for failing to pay
Pritpal Singh said he would be meeting the bridging
financiers of both projects next week to find out if and when work
He also planned to ask the bridging financiers for
the Newgate Avenue project to give a deadline for the original
contractor to restart work.
It was possible for another company to take over the
project as the commercial units were never sold and a number of the
apartments had not been sold, he said, adding that the money from
the sale of the units would be sufficient to cover the existing
amount owed to the financier and contractor with enough left over to
cut a profit.
He said it had been announced that bankers for the
troubled Rhythm Avenue service apartments had hired a project
receiver to conduct a feasibility study on how much it would cost to
revive the project.
He added that he would find out the status of the
study which was to be concluded by the middle of this year.
The buyers committee vice-chairman Victor Huang said
the committee also urged the Housing and Local Government Ministry
to include service apartments under the Housing Developers Act.
He said now, service apartments were not covered by
the Act and this had created problems in the way funding was
disbursed to developer by the end financiers.
"For properties which are covered by the Act, the
progressive payments are released into a fund and the payments are
made directly to the contractors," he said.
He added that for those properties that were not
covered by the Act, the money was released directly to the
developers and the contractors were at times not paid accordingly.
"This creates problems when a stalled project is to
be revived as there is an outstanding amount owed to the contractors
that needs to be settled, besides the cost needed to complete the
project," he said.