KSK's ambitious project 8 Conlay forced to sell after legal battles

• Positioned on a 3.65-acre parcel of freehold land along Jalan Conlay, adjacent to the bustling Bukit Bintang district, the development is a high-rise, integrated mixed-use commercial venture comprising a 61-storey Tower A, a 56-storey Tower B, a 72-storey Tower C, a 10-storey podium for retail and amenities, and five levels of basement parking.

KUALA LUMPUR (Sept 1): KSK Group's maiden property venture—its flagship 8 Conlay (pictured)  project that marks its ambitious pivot from insurance to property development—has been officially put up for sale.

Receivers and managers Adam Primus & Co listed the stalled RM5.4 billion megaproject, located in the heart of Kuala Lumpur, for sale over the weekend. Prospective buyers have until Nov 15 to submit their offers.

The sale is the culmination of over two years of legal disputes and financial impasse between the project owner, KSK Land Sdn Bhd, and its main contractor, GDB Holdings Bhd (KL:GDB). The development's listing for sale marks a disappointing conclusion to what was once a highly touted property debut for KSK Group.

KSK Group—formerly known as Kurnia Asia Bhd—sold its Malaysian insurance arm, Kurnia Insurans (Malaysia) Bhd, to AmG Insurance Bhd for RM1.63 billion in 2012. The group was subsequently delisted in November 2013 after major shareholders privatised the company.

Under the leadership of executive chairman and founder Tan Sri Kua Sian Kooi, KSK Group then rebranded its overseas operations before entering the property development.

By 2019, the former insurance salesman who never attended university was the country’s 35th richest man, with a net worth of US$420 million.

KSK Group’s property venture began in 2013 when its property arm, KSK Land, launched 8 Conlay in November 2015. The project was promoted as an integrated development featuring what was touted as the world’s tallest twisted twin-tower residences.

Situated on a 3.65-acre parcel of freehold land along Jalan Conlay, adjacent to the bustling Bukit Bintang district, the development was planned to be a mixed-use commercial venture, comprising a 61-storey Tower A, a 56-storey Tower B, a 72-storey Tower C, a 10-storey podium for retail and amenities, and five levels of basement parking.

However, the project soon became mired in a protracted legal battle between KSK Land's unit and its main contractor, GDB, leading to construction delays and eventual receivership.

Project delays and financial troubles

GDB was appointed as the main contractor for the iconic three-tower luxury development in November 2020. The RM1.25 billion contract was the largest ever secured by GDB. The project started well, and in November 2021, KSK Land celebrated the structural completion of Tower A, the first of the YOO8 branded residences.

The situation changed dramatically in August 2022, when GDB suspended work on the project due to payment issues. The construction firm sued KSK Land for RM120.7 million, claiming a breach of obligations under a corporate guarantee.

In January 2023, GDB lifted the suspension and resumed work on Tower A's façade after receiving a partial payment. The company withdrew its lawsuit in March 2023 and recommenced construction on Tower A following another partial payment, though work on other sections remained suspended. However, KSK Land failed to pay the outstanding balance in April 2023, and subsequent negotiations failed to reach a settlement.

In late April 2023, both GDB and KSK Land served notices to terminate the contract. KSK Land officially ended GDB's RM1.25 billion contract as the main contractor for the development. A month later, GDB filed a fresh lawsuit against KSK Land to recover RM102.1 million for services rendered and also initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012.

KSK Land had previously denied rumours of financial difficulties plaguing the project. In a July 2024 interview with The Edge, KSK Land managing director Joanne Kua—daughter of Sian Kooi—said the company "remains financially strong with sufficient resources to complete the development", despite acknowledging industry-wide post-pandemic supply chain challenges.

At a November 2021 ceremony marking the structural completion of Tower A, Joanne told reporters the handover was targeted for the end of 2022, with the Kempinski Hotel and other components to follow in 2023. The current status of these timelines remains unclear.

As of late 2021, it was reported that Tower A was 80% sold, and Tower B 40% sold, with prices averaging between RM3,370 and RM3,395 per square foot. As for Tower C, KSK Land had, in late 2020, secured a RM650 million syndicated facility from Maybank and Bank Pembangunan Malaysia to complete it.

New contractor and further legal issues

In June 2023, Conlay Construction Sdn Bhd (CCSB) was announced as the new main contractor for the project. According to a joint press statement from KSK Land and CCSB, the new contractor began mobilising their site team, machinery, and equipment on June 26, 2023.

A new completion timeline was also announced: Tower A and the retail podium were projected for completion in the second quarter of 2024, with the handover of vacant possession (HOVP) planned for the third quarter of 2024; Tower B was expected to be completed by the fourth quarter of 2025, with HOVP to begin by the end of 2025; and the 8 Conlay Kempinski Hotel was slated for completion in early the second quarter of 2025, with its opening planned for the fourth quarter of the same year.

At this point, Tower A was 61.6% complete, with the main focus shifting to its interior. Tower B was at 37.27% completion, with construction focusing on the building's façade. Since these announcements, there have been no further public updates on the project's progress.

Meanwhile, legal battles between KSK Land and GDB continued. In July 2023, a month after CCSB's appointment, an adjudicator ordered KSK Land to pay GDB RM97.8 million.

In January 2024, GDB filed a winding-up petition against KSK Land after the court set aside KSK Land's restraining order against its creditors. This petition followed a court order that had previously allowed KSK Land to summon a meeting with creditors as part of a proposed scheme of arrangement.

In April 2025, GDB secured a court order to enforce an adjudication award of RM59.32 million against KSK Land, just over half of the original RM102.1 million claim. Separately, in February 2025, an adjudicator ruled that KSK Land’s unit Damai City Sdn Bhd must pay GDB RM82.67 million over unfulfilled payment obligations.

The combination of these legal actions created an insurmountable financial and operational deadlock, which ultimately led to the appointment of receivers and managers and the decision to sell the entire project.

It may sound like a paradox, but the sale of 8 Conlay could be the key to its revival, creating a path forward after years of legal disputes.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.