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- Leisure Group Ltd would have no recourse or any further claims against Bandar Malaysia once it receives the undisclosed compensation under the settlement agreement, the Singapore-listed firm said in an exchange filing. The company would also have to hand back the project site on Sept 15.
KUALA LUMPUR (Sept 10): Bandar Malaysia Sdn Bhd, the state-owned developer of the eponymous project, has agreed to pay compensation as settlement for scrapping a deal to develop Escape theme park.
Sim Leisure Group Ltd would have no recourse or any further claims against Bandar Malaysia once it receives the undisclosed compensation under the settlement agreement, the Singapore-listed firm said in an exchange filing. The company would also have to hand back the project site on Sept 15.
“The parties shall keep all details and negotiations concerning the termination settlement strictly private and confidential,” Sim Leisure said, adding that the sum would be “material” for this year.
The settlement follows Sim Leisure allegations that Bandar Malaysia has breached its obligations by terminating an agreement to develop Escape theme park and selling the project site to Malaysia’s national oil and gas company Petroliam Nasional Bhd (Petronas).
Bandar Malaysia sold the 486-acre land, the site of the former Royal Malaysian Air Force base off Jalan Sungai Besi, Kuala Lumpur, to Petronas’ wholly-owned unit KLCC (Holdings) Sdn Bhd last year.
Sim Leisure then received a notice of termination over the project. The company signed an agreement in November 2023 to build and operate a 75-acre Escape theme park in Bandar Malaysia.
Sim Leisure owns and operates the Escape outdoor adventure park in Penang, the Escape Challenge indoor park at Paradigm Mall in Petaling Jaya and KidZania Kuala Lumpur.
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