Axis update

[Alfonso G]

Hi everyone,

I'm Alfonso and I'm an owner of one of the flat in the Axis Crown. Nice to meet you all. It has been years of waiting and with an incredible lack of updates from the developers. Is anyone had any alternative exit strategy? We have been talking to a lawyer and he has been advising us however we don't have clarity on what to do. It will be great if you can to share your thoughts. Is anyone aware of any real date of completion? Would it be an idea to collect some signatures and assign the case?

[Andrew Guntert]

Hi

I'm Andrew

Absolutely no idea what to do!! Have mostly been praying that developer won't go bust! I don't particularly want an exit as I'm looking forward to spending winter in KL.

I find it hard to understand why they can't commit to a realistic date and then keep to it, other than presumably a shortage of cash! I assume their current focus is the relaunch of the mall?

August 2011 we actually visited the apartment and it was so close to completion even then

I have been keeping in touch with (mostly) local owners via a (closed) Facebook owners group

Would be delighted to hear from others

Andrew

[mpmcginty]

Hi All,

I'm Matthew an Axis Crown owner.

On the company’s web-site they have two large new projects listed to start in 2015 and another project as well as Axis Crown on-going – it doesn’t seem like a company about to go bust. http://www.rkgroup.com.my/project_future.asp

 

Property Frontiers have said that Martin Jacks from Complete has confirmed work is on-going, so short of the company going bankrupt completion will likely be towards the end of this year. Then we have the issue of liquidated damages.

As a group we could write to the developer and ask for more information. At this stage, I don’t think I would like to take any further action. However, co-ordinating as a group now will help us in the event we do need to take action and may help RK to be more forthright with us.

Many thanks,

Matthew

 

[isavage]

Hello everyone, Ian Savage Here. I hope we will use this site to get some where with this development I will let everyone know on my Axis mailing list that there are other owners on this page.

[mpmcginty]

Hi Nick, Ian and other Group members,

I am in agreement with everything Nick says (see email below).

Despite the hassle this is a good solid investment.

Reasons for Optimism

1. By Law, as per the contract, RK Group is legally obliged to pay Liquidated Damages on handover.

2. There is only 2-3% (my estimate) of the overall project remaining to be completed.

3. RK Group is a large company with a good reputation to uphold.

However, that said ,if cash-flow is, or has been, an issue we may have a delay and a fight to get our compensation. A coordinated effort now, as per Nick's suggestion, to request for information about a completion date and the Liquidated Damages, should be worthwhile. I'm happy to take the lead in coordinating this.

Does anyone know how many people have joined the group? And how many people intend to join the group? I suggest waiting for a fortnight to give everyone who wants to join the group a chance to before taking any further action.

Kind Regards,

Matthew

 

 

Subject: Re: Axis update
Date: Thu, 30 May 2013 20:27:53 +0900
To:

Matthew

 

I'm Nick Murray - now living in China so struggling to get on to the Google site.

 

Would very much like to be part in any coordinated communication with RK as would be leverage for liquidated damages, although in the sales contract the damages are explicitly stated.

 

Ideally someone will volunteer to organise us, were you raising your hand for this?

 

Would suggest a request for info "signed" by a list of owners with apartment numbers. How many have joined the group?

 

Overall it still seems a solid investment despite the initial hardship.

 

Appreciate you reaching out on this.

 

Regards

 

Nick Murray

 

[Mercedes Franzini]

Hi Everyone,

My name is Mercedes Franzini, I own one flat the Axis development (22-E I believe) and I am extremely frustrated with the project, the lack of real news, and specially with the fact that they launched other projects after ours and completed them a while ago.

I am the one who has been pestering Property Frontiers to get me in touch with all the rest of the buyers who are in my situation to do something about this.  I think its been way too long since we should have taken some kind of action against the developer either to a) force to use all resources they currently have to finish the project or if we find out that they do not have any resources b) to basically figure out what we are going to do about it.

I spoke to one of the Directors from Property Frontiers (Daniel Cox) before this group was formed, and he agreed that this project has passed the average time of delays in any development and that they , by contract, cannot take any action on our behalf and against the developer. So we cannot sit and wait for them to suggest us to take action, and or really push the developer on our behalf or actually to get us together and tell us that we need to take action.

Its probably ridiculous to have 2 groups, so Ian if you have access to the other mailing group, would you be so kind to put us all in the other group and we can close this one? I apparently am in the other group but they have me with a very old email address from my previous employer...

I think we should all share what information we have on the project and figure out what is true and what not.

Maybe my email becomes obsolete when we join the other group, but I have found out very little so far, but my only source of information is Katie Bidwell:

- but basically, when she sends an "update" saying that the project is expected to be completed in 6 months, she admitted she has no source other than wishful thinking.  Property frontiers has not talked to the developer in over 18 months, and the person who is in KL has not had access to the developer in a while either. So I think what she means is that based on the level of completion (which is supposed to be 90% - but they really don't know), if there was work being done in the site (which they cannot confirm either) , the project could be completed in 6 months.

I know:

- its 63 of us in the same situation

- that in total we have more of 63 flats but don't know the exact number yet

- that there where 2 banks extending mortages: Maybank (thats the one i have) and CIBC

I am trying to assess the situation of the developer, how many we are, how many flats do we represent from the project, if the bank (who is being also very uncooperative) has allowed the developer to draw our mortgages in excess of the current completion stage.  etc.

- When was the last time any of us has had any contact with the developer?

- Does anyone know the real completion stage of the building? I would assume that if its 90% there, considering the fact that we purchased a flat that came fully furbished, the only thing that should be finished should be maybe painting and buying furniture.

In addition, I heard from someone who has not joined this group yet, that he thinks there is a possibility of a 10%p.a. compensation. but I don't know what his source is. I don't believe our purchase contract had a 10% clause, and i do remember i fought very hard for higher punishment for longer delays and they did not agree to it. Dan, would you be so kind to enlighten us with your sources? is this something you heard from the developer? Property Frontiers? is anyone currently negotiating with the developer on our behalf? or is it just the clause that you think we have in our contracts?

I certainly hope that the other group has more real updates on the project and the situation, and that there is really people working on the site and that it will be completed this year. 

Kindest regards to you all,

Mercedes Franzini

[Mercedes Franzini]

Matthew,

you just posted: "Property Frontiers have said that Martin Jacks from Complete has confirmed work is on-going, so short of the company going bankrupt completion will likely be towards the end of this year. "

can you confirm when and whom at Property Frontiers told you that? I spoke to David Cox and Katie Bidwell last week and the previous week and to me they said they cannot confirm there is people working on the site, they cannot confirm the level of completion, and that nobody the Developer  is not only not allowing Complete into the site but also they are not returning any of his calls.

Sorry to put you on the spot but what im trying to do is to find out what the reality of the situation is so we can figure out what is the best strategy.  I'm afraid we have been reading Property Frontiers updates without paying much attention to their careful wording of the events.. 

[andy.myers]

Hello all

I am probably not an 'active groupie' (forgive the phrase) but support the actions/view that Matthew summarised.

I am thus happy to support/assist where I can and put my 'vote in'

Thanks

Regards Andy

[mpmcginty]

Hi Mercedes,

 

You information is more recent and complete then mine.

 

On 10th May this year Katie (of PFrontiers) wrote the following email to myself:

 

 

Dear Matthew

It has been some time since I have been able to provide you with an update from RK Group in relation to Axis.

Frustratingly they have not been sending out updates either. I have been advised that this is for two reasons. Firstly they have scaled back their administration team to focus on completion, secondly they realise that they have disappointed buyers in the past by missing target completion dates and are reluctant to do it again.

I have been having regular conversations with Complete Ltd who have offices near to the project. They have been unable to receive a detailed response but have been advised that completion will be September with vacant possession being 1-2 months later.

I know that you will all be disappointed with this lack of information and I am working hard to try and provide you with something more detailed. I will persevere and hopefully be in touch shortly.

Kind regards

Katie

[mpmcginty]

Dear Mercedes,

 

The information you have is more recent and up-to-date than mine.

[Katie Bidwell]

I have been asked to post these pictures on behalf of Andrew, one of your fellow buyers. More to follow.

[Katie Bidwell]

And final pictures as promised.

[Alfonso G]

Hi all,

Alfonso again, if you need my signature I'm happy to support.

KR,

Alfonso

[cheche.noble]

Hi, I'm Cheryl and I have an apartment in Axis Crown.  My contract states a 10% payment for late delivery.  I think we will have to fight to get this money out of them.  I can't see them just handing it over on completion.  I believe the apartments will get finished but I can't understand what is taking them so long.  They were only 10% away from finishing about 2 years ago but stopped construction for a year! 

[neil.kennerley]

Hi mpmcginty et al,

 

 

I would be very grateful if you could get some information concerning a completion date or liquidated damages, though I've not had any success when trying to communicate with them in the past.

 

My understanding is that cash flow is the main reason for the delay, the developer having to sell some commerical units in order to complete.  Also, the S&P agreement is with Reliable Capacity Sdn Bhd and not the RK Group.  Unfortunately, this means that if Reliable Capacity Sdn Bhd becomes insolvent then the RK Group has no legal obligation to pay Reliable Capacity Sdn Bhd's debts, ie our liquidated damages.  Much as I'd love to be wrong, I strongly suspect that Reliable Capacity Sdn Bhd will not have enough money to pay any liquidated damages, and any money it might have will be claimed as preferential debt by the banks.

 

Sorry for the pessimism, but on a more positive note, subject to completion and delivery of furntiure package, I've had an indication from a local agent that the market price for my unit would be about 25-30% above the purchase price.

 

Kind regards

 

Neil

[Mercedes Franzini]

Thank you for everyone who posted your views and info.

I own unit E-22-06

and have a mortgage for 60% of the purchase price with Maybank

the mortgage has been drawn for up to the limit of me having paid up to 90% of the purchase price.

I cannot get any information from Propoerty Frontiers about the units we have collectively unless we all agree that we are happy for them to share our data with eachother. So could I ask all of you to write a quick note identitfying yourselves and the unit you own and agree that you are happy for Property Frontiers to share with all of us whatever data they might have with regards to your purchase?

I have so far only that its 63 of us, and that "some of us might have purchased more than one unit"

I can see that 42 people viewed this forum but only 7 of us have posted.  unless you post, this group does not allow any of us other than Property frontiers know who you are and who has been invited.

It has been implied by Property Frontiers that there is another group that might have been taking some action, but again, with them everything is a hint, and im really surprised that noone from that group has posted any news... 

I have a confirmation that "some of us have mortgages with maybank and some with CIBC "

I also know that there were 153 units in the builiding: so if we own 63 - we own 41% of the building.

I have confirmed that damages according to SPA are 10% p.a. (clause 26.2) , but unfortunately I agree with Neil's last post.. I am very negative about this

The mortgage is costing us about 6-7% per year, so damages of 10% are not really making us much money... especially with no horizon on completion.

Also, we don't really know how advanced is the building, because having paid 90% of purchase price doesnt mean (according to the schedule of payments) that by that point the cost was up to 90% of completion. The furniture would probably cost them at least 10% of our purchase price, and the lastest pictures we have (thank yo so much ANdrew G. for posting) show that all the finishings are not there.  and we dont know about communal areas.

Anybody else has any more up to date info??

[Andrew Guntert]

I am very happy to share my information if this will help and strongly favour acting as a group (or combining groups if there is another group?). I think individuals identity is clear through the email addresses of anyone posting on here?

Unit E-36-01
Joint purchaser myself and my wife A.N.Guntert and Mrs L.T.Guntert
60% mortgage with CIMB Bank
CIMB have been collecting both interest and capital from me for more than one year

Does anyone know of a reliable lawyer in KL? Afraid i dont!

Andrew

[andy.myers]

Hello Andrew/guys

I am E-35-05 - 50% financed with CIMB (and which I am servicing).  I have
already chimed in on this new group.

I believe it has been flagged before but my view is that I would happily
'waiver' the delay damages if that allowed the development to be finished to
the original spec etc

Apols if that is a bit of repeating the wheel. I am Uk based so can't help
with any local legal contact...
Regards andy

[Keidi Keating]

Hi everyone

I also own an apartment in Axis Crown and I email Martin Jacks from time to time for an update. Martin is based in KL and works for Complete. Recently he told me that construction was continuing and that he had seen work being carried out.

I hope that helps a little, but I do not have any more info.

I have a 50% mortgage with CIMB bank.

[Riaz Amjad]

Hi everyone

I own unit E-21-06 and have a mortgage for 50% of the purchase price with CIMB.

Thanks

Amjad

[Chris Jenkins]

Hi All 

It is my belief that the developers are maintaining a minimal presence on the site so that they cannot be accused of deserting the site and and as consequence cannot be held   in  breach of their contract with their buyers.  However, since they have a penalty clause of 10% of the property price they are not motivated to complete the development either as this will crystallize their losses.   it seems to me that they are just stalling. 

I financed 50% of my purchase via the CIMB bank. I am currently servicing the loan but cant cannot go on doing so forever with no asset to support it.  It would seem to me that CIMB  is heavily exposed and it would be in their interest to advance RK sufficient funding to complete the build and secure what is at present their collateral.  At present they seem to be following a typical Asian response which is to pretend it is not happening. 

While the developer is articulating good intentions, because of the points made earlier I do not believe that they are serious.   I believe it is time we grouped together and sought legal representation.

Chris 

[Chau Shum]

Hi,

I'm new to the group and it is so good to have contact with other buyers. Chris' post is very interested, and makes a point which I had not thought of in terms of the crystallizing their losses! 

I too think that the developers behaviour is totally unacceptable.  The lack of information cannot be justified, whatever their financial problems are.

I agree that legal representation is a good idea, and if we can act collectively it would have more impact and be more cost effective.  Only problem is I am not sure how we would go about coordinating such a group action. Has anyone got any experience doing such a thing?

Does anyone have any presence in KL, or know anyone in KL?

Chau

[Chris Jenkins]

I have asked Katie from Property frontiers if they are in a position to provide the contact details of a solicitor who can represent my (our) interests. She has past on this contact http://www.mayerbrown.com/mayerbrownjsm/ however, it seems to me that this firm does not have a presence in Malaysia and seem a little high octane. I have requested if it is possible for Terry Jack to recommend a local practice.  To Chau request does anyone on this chat board know of someone who could perhaps source a firm of solicitors that specialize in property etc that we could approach.  I am going to identify some legal representation in any event but if either Property frontiers  Martin Jacks or someone reading this post could help source a firm appropriately it would be immensely easier. Once done I am happy to report back what they recommend. 

[Mercedes Franzini]

Hi Everyone,

Its Mercedes again.

As I've said before, I requested Property Frontiers to get us together to organize some action. I fully agree with Chris that we will need a lawyer. however, I am still a bit concerned that out of the 63 buyers that I know we are, I have only heard from 12 of us.

I believe its very important to assess the situation first, in order to take the right kind of action.

In addition, I have been made believe that there is another group, previously organized I dont know by whom, that has already spoken to a lawyer, and am extremely surprised and disappointed about the fact that so far noone from this group  has been part of it.

I am investigating the situation and last week I found out that only 30 out of the 63 have been invited to join this chat. the reason still to be found out. 

I will keep you posted on my progress, but again, if ANYBODY here is part of such other group, would you be so kind to ask if we can all be part of it, I dont see the point in there being 2 groups and acting without coordinating. 

Kind regards,

MErcedes

[mpmcginty]

Hi All,

I wouldn't be happy getting legal representation at this stage. The developer hasn't actually broken any laws, as the contract says they can delay completion, only that they should pay compensation when handover takes place if they do.

I think the first step should be a letter written to the developer requesting information about the on-going development and latest completion date. I agree with Mercedes that this should come from (ie be 'signed') by all 60 investors to give it weight.

 

In the letter we could threaten to take legal action if not provided with the information requested.

 

This is a first step, and one we could take immediately (once we have found the missing 48 investors)

 

Matthew

[Chau Shum]

Yes, that would seem sensible - a group request for update. But at the same time sourcing potential legal representation is not a bad idea so we can proceed if need be. 

[Chau Shum]

Here is  copy of email I got this morning from Nick. He has not yet managed to get access to the group so I have offered to post this for him:

Please see email sent to some of you already, intended for wider group as well please.

 

 

• Nick Murray

To

• Mercedes Franzini
• http://uk-mg42.mail.yahoo.com/neo/#

 

Dear all,

 

I have a friend who is a surveyor in KL & have asked ofr his advice in how to proceed.

 

The news is not good.

 

In essence:

• As previously pointed out on the forum, the developer will realise a loss if they complete the building of some 30% of the unit purchase price plus 6% of the purchase price as common facilities also delayed (under clause 26.2 & 28.2) of the SPA
• It is common in Malaysia for the "shell" company - Reliable Capacity of fthe top of my head - to declare bankruptcy, leaving us a creditors for the Liquidated Damages (LD's) under 26.2
• The hard part is that the liquidator would then be able to sell the property under auction - typically to their mates - for a knock down price leaving us who do not have title to the our units (as they are not complete but still assets of Reliable Capacity) holding the debt to the bank without having the asset.
• As creditors after the bank has taken its share we might get 20 sen on the ringgit on the on the LD's but just to repeat end up with no units to our name but still owning the mortgage to the bank for those units
• Adverse publicity won't work, corporate Malaysia simply ignores this

I am taking the following steps & will gladly provide sample letters for the rest of the forum to use should they wish. Most of these steps are to prepare for the worst  whilst I still hope they will finish the building. As again someone has pointed out, it might be worth waiving the LDs if we could be certain of getting our units as a result.

 

1. Send Reliable Capacity a statement of account for the LD's to establish myself in the potential queue of creditors.

 

2. CC this to both the bank & arechitect to position myself to make some noise over the process of funds release, potentially fraudulent architect's certificates, 'you were all in this together' in case I decide to walk away from my mortgage & chance the Malaysian authorities tracking me down. This is not advice to other member's only an example of what I might consider.

 

3. Perform credit checks on Reliable Capacity & RK Group to find out paid up capital & directors' personal liability - no point taking legal action against a 'hollow' company

 

4. Send a letter to the bank that this is a stalled project on which I'm owed 30% so even if completed not to pay the outstanding balance as the developer owes me more than I owe them.

 

 

My contact in KL has also offered to try to access the site to access if there is any actual work going on.

 

Once I have sent the letters as per above then I would be keen to get the complete forum of Axis owners together to negotiate with Reliable Capacity that we don't pay any remaining installments for the units & in recompense we waive our right to LD's.

 

Mercedes - please let me know if you have any progress in getting the other Axis owners into contact with those of us on this forum.

 

Appreciate anyone else's views on what I've outlined above & also Property Frontiers 'sell & run' attitude on this. I've requested they provide details of their due dilligence on this project but so far not seen anything.

 

Kind regards,

 

 

Nick

[Chau Shum]

Here is a subsequent message with further update:

Hi all,

 

A further update, I have just spoken to Maritn Jacks of Complete in KL. He painted a somewhat more optimistic picture of the situation. In summary:

 

• there does appear to be activitiy on site & TK are working on the adjacent Axis Fiesta F&B / mall development. The building's facade is completed & it is 'only' the internal finishing that is outstanding.
• Martin's view & this is only his opinion is that RK will hand over title of the finished units end of this year / early next then wind up Reliable Capital so best to forget the LD's
• He'll keep providing updates if he has them to Property Frontiers - I've asked him to ask his propertry managers in the completed Axis tower to just do a rough headcount of workers on Axis Crown at clocking off time or Friday prayer break so that we can make some assessment of resourcing of the outstanding work
• Write to your respective mortgage providers in my case MayBank & block any further payments to Reliable Capital - we can at least recoup 5% of the purchase price of the unit against the LD's.

Martin also mentioned that if we do get our units these are popular & well priced - the ones Complete already has under management are rarely vacant & the yield is sound - he has some 50 clients as owners of Axis Crown waiting to use his services.

 

So hopefully some short term pain for a brighter longer term picture, although the worst case scenario is as per my previous email.

 

I'm open to any ideas if anyone has them but believe the 2 important steps are:

 

- get the Bank to block further payment

- register our claim with Reliable Capital as a statement of account

 

As siad once I've got my drafts of these I'll share the format with you all.

 

If we can get Reliable Capital to communicate with us that would be a welcome step forward as well.

 

Have a good weekend wherever you all are.

 

 

Nick

[neil.kennerley]

Hi all,

 

My unit is E-23-06 and I have 35% funding by Maybank.

 

Neil

[isavage]

Hi Guys My Unit is E3205 & I have 70% Mortgage with CIMB bank that is 90% paid out & would like Property Frontiers to add me to the list & more pro active for their clients.

CIMB suck at any kind of communication & I have not paid them any money worth talking about for the last 2 years as I fear this "investment" will not conclude happily.  As CIMB  are on the hook from a number of other owners I have asked them to get on to RK to work things out about 12 months ago. Of course they have never been back in contact, even when asking simple questions regarding my account with them.

I suggest you do the same, save money & use the bank as a tool to get some leverage on RK to get things moving.

Regarding legal advice why not contact the lawyers who represented you in the purchase as they already know about the project etc...?

There has been some talk about another Axis group. I was helping organise about 23 owners on to an email list who have been sent the Google groups link. Not sure if there is any other group as well. 

Kind regards

Ian Savage

[Chau Shum]

Hi Nick,

Not sure if you've posted or emailed the draft letters you were going to use. It would be very helpful if you can as you've obviously given a lot of thought into this, and no point reinventing the wheel.

Many thanks,

Chau

[Andrew Guntert]

an old colleague of mine (a Malaysian Accountant) has recommended a KL lawyer to me as being particularly good and asked the lawyer to help me. I have emailed the lawyer with a description of the issues including the existence of this group (merely that it exists, nothing more).

I have asked him what step or steps he thinks could/should be taken and what the costs might be. This lawyer is referred to in several places on the internet as having represented clients in court cases and I suspect he may be pricey but I will update the group as to whatever he says

Andrew

[Chau Shum]

Here is a message I'm forwarding on from Poul E Bitsch as he has not been able to post onto the group for some reason.

Dear All,

 

I am the ( un ) lucky owner of unit 27-06. Luckily I have no mortgage on the apartment, but, like everybody else, I have paid 90% of the total purchase price. Like everyone else, I receive no update from the developer, but fortunately I have contact with a real estate company based in the complex, and the guy there can see our building from his office.

 

According to him, there is still work going on, and the exterior seems completed. He can, of course, not see how fast they work on the interior, but in the complex they were talking about that the building would be ready by mid 2013, and approved for occupancy by latest end of the year.

 

The shopping center is being upgraded, and they expect numerous well known restaurants to move in.

 

Last year, I wrote to the ministry of interior, and ministry of tourism, complaining that I, as holder of the Malaysia My Second Home Visa, was mislead by the developer, and that I am still not able to move to KL, as my apartment is paid for, but not ready. Needless to mention that I never received a reply.

 

From all the information I have, it is my opinion that the developer will complete the building, and then declare bankruptcy, to avoid paying the penalty, but not have 156 lawsuits for not completed the building. A thorough audit would properly prove that part of our payments have been used to complete the other apartment buildings, which would be illegal.

 

I agree to seek legal advice, and if we proceed as a group, it will not cost a lot. It would also help to prove to the developer that we are not "helpless foreigners with no teeth". 

 

Best regards

Poul E Bitsch

 

[Chau Shum]

Thanks.  It would be very interesting to see what he says.

I have seen various posts about the exterior being pretty much completed.  In fact, we visited the development in 2011 and the exterior already looked complete, as was the shopping centre (just not fully populated with shops). We managed to arrange to meet the developer at their office and were taken to what was supposed to be our flat!  So escalators were working but inside corridors were still bare. We went to the top to view the pit that was supposed to become the pool, and also the second pool on a lower floor. "Our flat" was tiled, windows in and even had furniture!  Of course, I could not really verify it was our one, and it might have been done for show.

So that was 2011.  Can we get any evidence of further progression? Various local agents, such as Complete Ltd, have seen evidence of work going on. I wonder what this actually means, as presumably they have not seen the inside?

What we really need is someone to gain access - pitch up at their office which is on-site and get (drag!) someone to take them in to have a look!

[mpmcginty]

Hi All,

 

1. I think its great that some of us have leads on legal action, but I still think the first step should be a joint letter to the developer requesting information. Surely, this would help any legal action if it came to it?

 

2. I also agree with the comments about Property Frontiers having a reputational stake in this. I propose we also write a joint letter to them, requesting they coordinate and pay for legal action on our behalf.  

 

3. Regarding the number of investors. Katie Bidwell was supposed to have sent an email to all investors inviting them to join this group. She should therefore know a) how many people she invited b) how many have responded c) what those responses were. Could someone who as been in contact with Katie about the group follow that up?

 

4. At some point, say about 2 weeks or so, we should just go ahead with the letters regardless of the number of people willing to put their name to them. They could always be re-sent again later with more 'signatories' if need be.

 

Thanks,

 

Matthew

 

 

[Mercedes Franzini]

Hi Guys,

I lots of useful info over the past few days.

On my side, very little progress on getting data even data from original due diligence from Property Frontiers.

Also, sounds like Katie Bidwell only sent invites for this group to 30 out of the 63 owners, 15 who had accepted the invite... so we are still far from getting a full list.

so far, although the group is not representative of the whole, sounds like CIMB has a lot more exposure than MAybank. but this project was originally marketed by PF with HSBC mortgages, which for some reason I could not get, but maybe some did.

I will call PF again to make sure we get access to their original diligence materials so we have better knowledge of the developer structure , their finances and what do they own of the building.

REgards,

Mercedes

[Alfonso G]

Hi everyone,
Any news? I have not see anyone posting for days and wondering if there is another group? Would it be an idea to take some actions? My concern is that for too many years I have heard that the completion date will be by end of the year..
Best Regards, Alfonso

[Mercedes Franzini]

I think we all received, last Wednesday June 26, yet another misleading update email  from Katie Bidwell from Property Frontiers. And I'm replying through here for the benefit at least of the people in this group.

Katie, I demand that your Directors send an update email following up on your message, giving very specific clarifications on what the following  statement means 

"was advised that completion will be the end of this year and handover early next year"

You are once again, creating false expectations within the group of buyers. 

Martin Jacks has not ADVISED anyone about the potential date of completion and if that is the case We want to know based on WHAT FACTS do you dare to distribute an email with such NEWS.

I am at this stage furious with your lack of cooperation, and frankly, as I have said before I find your "update" emails INSULTING to the buyers of Axis.  I have already sent you an email ASKING you to stop distributing no news in the form of news, I had a telephone discussion  with David Cox about it, and then you go and do it ALL OVER AGAIN. 

"Dear Mercedes

 

As you will be aware I have been trying to contact the developer to obtain an update on your behalf but have sadly been unsuccessful to date.

 

Martin Jacks from Complete Ltd did visit site on Friday and was advised that completion will be the end of this year and handover early next year. The external works are now complete with the internal works on-going. There are plenty of workers on site although work does seem slow.

 

I will keep pushing the developer to try and get an update directly from them.

 

In the meantime just a quick reminder that we have set up a Google groups forum so if you are not already a member and wish to join please do not hesitate to contact me.

 

Kind regards

 

Katie

 

Katie Bidwell Executive Assistant to the Directors"

[Katie Bidwell]

Dear all

Martin Jacks and his team have been visiting the neighbouring buildings at Axis regularly as they manage buildings there. On a visit last Friday he was told by somebody within RK Group that they were aiming towards a completion at the end of this year with handover in the first quarter of next year. A client contacted me following this update to confirm that he had just been told the same thing by RK Group.

As you are all aware we have been struggling to communicate with the developer so have not been able to get any specific dates. As we were just the selling agent and the contacts are with you all they are not obligated to provide us with anything so we would urge you to continue your efforts to contact them. We will of course continue to pursue them for updates too.

We will continue to send updates with any news even if it is not as detailed as we would like from any source we can obtain information from. As I have stated before Martin Jacks has clients in the building so it is in his best interest to try and obtain updates too.

Should you have any further questions please do not hesitate to contact me either via this forum or my email which you should all have.

Kind regards

Katie 

[mart_pitch]

Dear all
A few weeks agao I emailed Uma Ravi at RK Group via LinkedIn as follows:

"Is there a definite completion date yet?? Its got to the point where various investors are talking together about legal action. we do need an update showing a definite plan of how and when the project will be finished and assurance that necessary finance is in place."

I did not really expect a reply but yesterday this came through from her:

"Technically, I've tendered my resignation and can't communicate officially on the status of the project. However, I have to say that I doubt what you're requesting is obtainable at this point. I'm still negotiating with my existing boss on what his plans will be concretely. I'll speak to PF when I have word. Sorry I can't be of much help now."

It does not indicate to me that there is much of a focus in completing the units by the end of the year. My own theory (for what its worth) is that they need to appear to be doing something to finish the flats so that they can sell the retail units in the mall vat a higher price (given that the price would depend on footfall which would be higher if the apartments were occupied). If they really were going to finish the flats there should be a project plan in place, as they would need to hire in labour and contractors given the work involved for the communal areas and fitting out.

At some point I think we will need proper Malaysian legal advice. For example, what extent we as owners/creditors can take control of the process by appointing our own administrator/liquidator of the development company if they fail to complete the contract. Then at least we will not get short changed if RK appoint a liquidator of the Reliable Capacity company (the company we contracted with)  friendly to them who sells the development on at a discount. It may be that malaysian law allows us to appoint an administrator after a certain period of default, for example. There must be some provision in malaysian law to prevent this current situation dragging on indefinitely. CIMB have previously advised me that interest on the mortage debt would be waived if the Housing Ministry certifies the project as abandoned and maybe that certification would also be the trigger to get in someone new to replace RK group who (at a cost) would complete the project. Possibly the very action of trying to get the certificate would spur RK on given that it may be embarrassing to them at this time.

However, I sense there is not much appetite for us to collectively take/pay for legal advice at present.Maybe we need to agree a line in the sand after which legal advice definitely needs to be taken?

From my own point of view I have now stopped funding my CIMB account which pays the mortgage debt and interest on the units I invested in and strongly suggested to CIMB that its in their interest to speak to RK group to put some pressure on given the number of CIMB's foreign clients with mortgages. Not sure that will achieve much but worth a try.

[Alfonso G]

Hi everyone,

I think we should be taking some actions, I have always been on the idea to use a law firm in support of the cause.

Would it be ok if everyone can show the intention to proceed or not?

Look forward to hear from you.

Best,

A

 

[Andrew Guntert]

I am in favour of consulting with a lawyer.

I am still waiting to hear back from the KL lawyer strongly recommended to me (mainly because my Malaysian accountant friend who recommended him to me gave me a slightly incorrect email address - explaining why I didn't hear back!!)

Andrew

[andy.myers]

happy to proceed at sensible pace Alfonso, thanks,  and support a class action on the legal side etc

Sorry, I I just don't know anyone in the Malaysian arena hence my quietness on this slice of the topic.  Can see Andrew G has just chipped in so thanks for that

regards

Andy

[amjadriaz30]

Hi everyone

Happy to proceed on getting legal advice to find out what options we have. Also what do we do, in worst case scenario etc.

There no point in talking about lawsuits and making threats,as such at this stage. The nightmare scenario is as described earlier when liquidation/bankruptcy entails  and someone else takes our apartments and we are left with nothing. (Hoping this is not possible)

My personal opinion is, there is very little if any work going on, hence the lack of updates. As frustrating as it is, I would like to see the work completed, even if it means some more delays, rather than the developer running away if they get hit with all sorts of legal action. 

Rgds

Amjad

[Andrew Guntert]

Please respond if possible

I have just been emailed by the lawyer in KL recommended to me by a local Accountant.

Quite reasonably he has asked me for a copy of the Sale and Purchase Agreement which you may remember is 56 pages only

Does anyone please have an electronic copy of this???

If not I will have to patiently scan it but very much hope not to have to do so!!

Thanks and regards

Andrew

[Andrew Guntert]

Katie has sent me a blank generic version of the SPA which i have forwarded to the lawyer together with a scan of the pages specific to my agreement 

I will update the group when he gets back to me

I must say I have no idea how we would deal with the practicalities of joint actions/costs etc but lets worry about that when we get some legal comments.

I suspect for friendship sake (being a good friend of a good friend) he will initially suggest possibilities, but cost will appear quite soon!!

Is anyone apart from me a member of a closed Facebook Group of Axis owners? Some of them live in KL (though not yet in Crown!!) and might be interested in joining any action and obviously would find it easier to speak to the lawyer?

thanks

Andrew

[Mercedes Franzini]

Thank you so much Andrew for consulting with a Lawyer. I am obviously in agreement of taking legal action ASAP.

I am also in agreement to share costs of lawyers.

Unfortunately, I think we are already at the WORST CASE SCENARIO. 

I have been trying to find out how many units and/or retail space was RK intending to keep in this project, as well as the costs of finishing from the original due diligence  PF performed on the project before marketing and distributing the project, se we can  have an idea of the costs to finish it as well as to calculate if there is any value left for RK in there. 

But we should expect there is some value on the retail units thats why they bother having people in there. but we need to find out under whose name the retail units are and block them from selling them at all (if they have not done so yet). thats the only value left there , which might not even be enough to pay for the finishing of the building.

A quick back of the envelope calculation: they sold 150 units for MYR 400 k each, they owe us 3 years of 10% for delaying completion (plus interest charges , and some other minutia that I wont include) , thats about USD5.6 million!! I do not believe the retail units or everything they have on that building is worth that much.

Im also not adding what it would cost them to finish the flats, or putting in the furniture... which might be another couple of million... but I have no basis for this estimate. 

So Clearly, these guys are not in the game of finishing the retail to sell them to use the profits to finish the building. they will sell and run... 

We need to aim at getting possession as is, and go after the developer for anything he might have...

Someone was also drafting some letters with a Lawyer, he has posted that he would send us his draft letters to the bank and RK. I think those would be very helpful as well.

Kind regards,

Mercedes

[isavage]

I feel too that any more time wasted will cost us owners even more money. we should push on with legal advice & ask PF to take a lead in getting the owners all on board. I have said a number of times we should offer to wave the fees in return for a finished unit. something is better  than nothing at this stage!

Sucks but that’s how RK have played it, :(  !

BTW i too have not been paying my CIMB mortgage to see if that will get the bank involved, oh & to not waist any more money on this "investment"

 

[Chau Shum]

Sorry everyone for the delay. Here are the sample letters from Nick Murray.  

Just to confirm, if anyone is able to organise a secure way of sharing legal costs then I am happy to take part in that.

Thanks,

Chau

[Andrew Guntert]

(very disappointing) feedback from Malaysian lawyer!

I explained what many of us suspected might happen (ie optimistically we eventually get handover, but the company we have the contract with goes into liquidation so no damages available - personally I just want the property!!) and I asked what we can do, and he has replied as follows (note - on the internet he is referred to in several high profile cases and clearly has a good reputation so no wimp!)

his reply:

"I have perused the SPA  and it appears that the date for delivery of vacant possession has long expired. Your entitlement therefore is the compensation for the late delivery calculated until such time when they give you the keys.

There is nothing much that can be done at this moment against the developer. Your lawyer who handled this transaction will be able to update you on the progress of the development and liaise with the developer with this regard.

If you have any exchange of correspondence with the developer, kindly let me have a copy of it and if you want me to follow up on it i will do so"

Obviously we are not receiving anything from the developer to show him!!

I do not feel confident that contacting the lawyer who handled the transaction will be benefical in any way but we could try? Did anyone use a lawyer other than Messrs Edward Soo, Lew & Co

[mart_pitch]

the lawyer really stated the obvious there !! I thought the area where we need legal advice is in the event that RK group does not hand over as given that 3 years have elapsed since the contracted delivery date I just do not think they will, ie what options are available to us in that case?
martin

[isavage]

Yes what is this lawyer thinking? he did not answer the question...oh hold on that’s what they do for a living :) maybe we could ask Edward Soo, Lew & Co to advise?

Or do you feel Andrew he could answer the bigger question??

[Chris Jenkins]

Hi all

I contacted Edward Soo Lew and they will not represent us citing conflict of interest.

The response from the lawyer below is completely unsatisfactory - it is clear the first step is to prove the site is "effectively" abandoned" and move forward on this basis.  I think the first thing we need to do is to establish who in this group wants to participate in a group actions against the developer and act as a group with CIMB,  We need to create a formal list so we know who the numbers of the people participating. Please can you mail me directly if you wish to be added to this list. Please can you reach out to others who may not be on this group id to reach out to me likewise. I will collate all the information onto one spreadsheet and circulate.  When you mail me please confirm the following information

Name
Apt #
Name of bank supplying the mortgage
whether you are still servicing the loan
Telephone contact number

Please indicate that you authorize me to collect and hold this personal information on your behalf and to circulate it to other members on the list only.

My mailing address is chrisje...@gmail.com


I believe we need to be much more cohesive then we currently are 

regards

Chris 

[isavage]

GREAT CHRIS i'm with you, times up now, we need to now push back on RK to move forward & will mail you the requested info. I also feel that property frontiers have their part to play in this too so will mail today & request they advise us how they are prepared to assist us.

[mpmcginty]

Hi All,

I am in agreement with Chris and will send my information separately to him.

I still would prefer the first step to be a joint letter to RK Properties (even if it is unlikely to have any effect).

a) under the threat of coordinated legal action they may provide us with much of the information we need.

b) if it did go to court, it would stand as an exhibit of RK Properties refusal to cooperate.

c)it would not take long to draft.

I also think we could write a joint letter to Property Frontiers suggesting they coordinate and pay the initial legal costs. They will strenuously push back on this as they will not want to be locked into potential spiralling legal costs.

I will draft the letters shortly and share them here for those who are interested to comment.

Many thanks,

Matthew

[Andrew Guntert]

for info (?) photo just posted on Axis Ampang Facebook group.

Its a closed Facebook group with an administrator living in KL who is a Crown purchaser - most of the members live in Axis Residences or Axis Soho

For better or worse it shows some work going on?

[mpmcginty]

Hi All,

 

I trust you all received the note from Katie about the monthly updates restarting now that the completion date is nearing.

 

I suggest postponing the joint letter until we see what information we receive in the update, then requesting what additional information we need afterwards. We will likely still need information about forecast completion date and about what financing and plans RK have put in place to pay the LDs.

 

Matthew

[Chris Jenkins]

Hi All 

I now have the details of 13 people as per my last post. Naturally Kate's mail regarding an update at the end of this month has some bearing on next steps but frankly we have heard it all before and I do not think any update should prevent us from identifying an appropriate legal resource and seeking guidance. The fact remains this company owes considerable more in penalties then it can recoup in fees.  There are considerably more people on this group than have contacted me so far so please can you reach out to me if you wish to form part of this sub group with your name, appt number, mortgage provider and if you are currently paying it email and telephone contact details. 

[isavage]

Hi All

Just a note to say as it was Kate at property frontiers set up this Google group I would assume all mail on here is also arriving in her/there in box too. If so it will be quite clear that a number of the natives are getting restless & some action will be needed to pacify them! I have written to Ray Withers one of the directors/owners of PF asking him to explain exactly what PF is prepared to do to help us. He has advised he will be back in contact in the coming days to advise.

 Best regards

 Ian Savage   

[isavage]

Hi Everyone

I take it you alll now have receved the below mail & the Att "update"

What are they thinking, sending this to us? The developer could think this would be appropriate if everything was on track in the time frame some years back. This just demonstrates their lack understanding or care about the buyers concerns & frustrations! 

I have sent them a mail back to let them know. i will post it  here & suggest doing the same too.

 All the best

 Ian

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Dear All,

 We are pleased to  update you with the latest progress of Axis Crown for the month of July 2013.

 

Credit Admin. Department

RELIABLE CAPACITY SDN BHD

S-3, Level 2, Fiesta @ Axis Pandan

Jalan Cempaka, 68000 Ampang,

Selangor Darul Ehsan.

Tel: +603-92821008      Fax: +603-92827008

 

A Member of ZAJ PROPERTIES

[isavage]

Below Mail i sent RK Group

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Dear RK Group

 

This “update” is pathetic & unacceptable!

 

What are you thinking, sending this to us? The RK Group could think this would be appropriate if everything was on track in the time frame some years back. This just demonstrates your lack understanding or care about the buyers concerns & contract with you!

 

To make this update appropriate the owners need to see much more info about the time line to completion, contactors who are working on site, works undertaken & planed. Most important some kind of accounting for the project.

 

I would be very glad if you will take these requests seriously & act accordingly as a number of owners are at the point we would prefer to start a legal process than wait any longer. Moreover the owners need a clear understanding of the path forward & cooperation from RK Group when this build is so severally delayed if legal enforcement is to be avoided.

 

Please respond to me promptly

 

Sincerely

 

Ian Savage

[mpmcginty]

Hi All,

 

Nick has asked me to share these with you.

 

Mall looks partially finished, but quality good in the finished areas.

 

Matthew

[Chau Shum]

Thanks.

Just wondering, who took these photos? 

I agree that the RK Group "update" is really inadequate.  I emailed them directly for further info re completion and got reply that they are on target for end of 2013 with hand-over early 2014.  Well, we've heard this before, so won't get too excited.

RK really needs to give much more information: 1. More photos of all areas - mall, common facilities, apartments etc. 2. Clearer details re: outstanding works to be done, 3. Clearer indication of estimated completion including safeguards against further delays, 4. Process for hand-over, 5. Their plans for compensation

I will pass this on to RK by direct email as well and see what they say.

Chau

[isavage]

Hi All

I forgot to post this mail i got back from National Housing Department.

Ian S

From: Damshah Hashim [mailto:dam...@kpkt.gov.my]
Sent: 28 August 2013 03:33
To: isa...@onetel.com
Cc: Avtar Singh S Bhag Singh; Junaid Izuddin; Suraya Mohd Saifullah
Subject: Delayed Housing Project

 

Dear Sirs,

Sorry to inform you that this project, constructed by Axis Crown Development Sdn. Bhd.
at PM 01008, Lot 27985,  Seksyen 16,  Batu 5, Jalan Ampang,  Mukim Ampang Daerah
Hulu Langat , Negeri  Selangor is not under Abondon list, so we advice you to contact
Bahagian Pemantauan Swasta for further action :-    contact person incharge

Mr. Ir  Lai Liang Koong     or

Miss Mageswary a/p Macap

Tel      : 03- 88914201

emel  :  pa...@kpkt.gov.my


Kind Regards
-------------emel----------------
DAMSHAH BIN HASHIM
Abandoned Project Rehabilitation Division
National Housing Department
Ministry of Urban Wellbeing, Housing and Local Goverment.
Tel : 03 - 88914280

[isavage]

BTW I also sent all the same info i mailed to the Abandoned Project Rehabilitation Division on to e mail address they suggest in their response.

Ian S

[Katie Bidwell]

Dear all

A fellow buyer has asked me to post this on his behalf:

The picture attached was taken last week.

I am still chasing the next update for you and will continue to chase until you receive it.

Kind regards

Katie

[mpmcginty]

Hi All,

It's my view that in all probability work is continuing on the site it will be completed by the end of the year or shortly after, however, I can understand the concern regarding the developers intentions.

I am not sure what we can do about this, though, as the developer has not broken the contract. He is legally allowed to delay completion as long as he pays compensation when the completed apartment is handed over. As some work is clearly going on at the site, I believe it would be very difficult to prove that the developer is doing only the minimal amount of work, even if this is the case. I guess the lawyer after reviewing the case may be able to advise here, but if we a confident of what he will say beforehand if there any point to pay a lawyer?

There is, however, another area where we could engage the services of the lawyer. A lawyer could write on our behalf to RK Properties and ask for forecast completion dates and also information regarding the liquidated damages.

We may get the former but not the latter. In that case we can ask the lawyer to write to our respective banks on our behalf and ask them not to pay the remaining 10% of the mortgage (most of us have mortgages that are only 90% drawn down). Both the LDs and the final 10% are due on the same day, the only way to legally not pay the remaining 10%, I believe, is to first prove that RK have no intention to pay the LDs.

By following this process we should get clearer completion dates, put pressure on RK re completion and liquidated damages, and in the case that RK do not communicate regarding the LDs recoup some of our money.

My experience with CIMB Bank is that they are awful communicators and foreign customers are low priority, if we ask privately for them not to make the final 10% payment they may just ignore us, and what is our legal position? Better to get it done through a lawyer. The layer may also be able to advise of taking further action re LDs once handover has taken place.

 If RK do not even respond to our lawyers questions regarding completion date then our worst suspicion may be confirmed, the lawyer may then be able to advise further action.

Another point, which I don't think has been raised yet: how are we going to check the apartments are finished on spec, is this something a lawyer would do? I'm thinking not. Maybe it is something Martin Jacks can do?

 

It would be interesting to here some thoughts on the above.

Thanks,

Matthew

[Andrew Guntert]

On the final point back in Jan 2011 i paid £270 to Complete to check the handover for me but i did not tick the box for tenanting and ongoing management as i intend using the property often
This was arranged by PF

[mpmcginty]

Thanks Andrew, I seemed to have missed this, I'll have to contact PF

 

P.S. In my email above the following sentence should read:

 

"but if we are confident of what he will say beforehand is there any point to pay a lawyer?"

 

please forgive the typos.

 

Matt

[neil.kennerley]

Hi mpmcginty et al,

 

I have to agree with most of what you say, and in particular that the developer has not broken the contract, that the project has not been abondoned and we're not likely to get a useful answer regarding compensation.

 

But I think it would be dangerous to not pay the remaining 10%, or ask the lender not to do so (though they would probably ignore any such instruction as we've already given an irrevocable instruction to pay).  I've not looked closely at the contact recently, but I'm pretty sure there is a clause preventing buyers from setting off any part of the purchase price for any purpose (ie, not paying the 10% would put us in breach of contract).  I believe there is also a clause about buyers forfeiting any monies paid in case of breach, which if exercised would leave us with no appartment and an outstanding debt to the bank.  While we might be able to challenge this as an unlawful penalty clause under Malaysian law, this isn't an avenue I'd want to go down.

 

Neil

[Andrew Guntert]

I have deliberately not instructed my bank not to pay the final 10% as that does feel fangerously like a breach of contract on my part, though i will feel very resentful if it has to be paid unless completion is very very close!!

[Andrew Guntert]

these pictures, taken today, have just been posted on the closed Facebook owners group by an owner living in KL - i hope they all show?

[Andrew Guntert]

someone just asked me what changes there have been? Obviously I've no real idea at all but it does look rather different to the July 2013 update we were sent (just compare the pictures).

I messaged the guy in KL who posted the pictures onto Facebook and he told me he lives currently just 500m away, and he said "progress is being made, but in a very slow mode"

[isavage]

ACE Andrew. This guy could be a GREAT contact! do you have a link for the FB page ?

All the best

Ian S

[Andrew Guntert]

for those who asked about the Facebook group

the Facebook page is called "Axis Ampang"

it is a closed group and the administrator is Katherine Yong - from memory she asked me to confirm the name/s of the purchaser and the unit number. 

She does not want property agents to join the group!! (understandable!!). Most members, though not all, are local and many occupy Axis Residence and Axis Sohu.

I have found it good to be in touch with people who could be "neighbours" at some future date though it does seem a long time since we first agreed to meet for a party when we are in occupation!!!! 

Everyone in the group seems to speak English and very very rarely is either Chinese or Malay used in the group

[Andrew Guntert]

This was posted in the Facebook group today by the woman who is a Crown purchaser and is the administrator for the group. I think "fingers crossed" is appropriate!!

Latest update for Crown owners. Paid a visit to RK office and the person in charge told me quite a positive news. Currently, they are working on the common areas of Crown and also preparing to move in the furnishing (for those who purchased fully furnished unit). Touch up are being done on empty units as well. Their target is to contact each one of us for VP by end of the year. *fingers crossed*

 ·  ·  · 42 minutes ago

[isavage]

Mail just in that is helpful for everyone to see:

Ian S

From: Mohd Tarmizi Mat Tanda [mailto:mohdt...@kpkt.gov.my]
Sent: 19 September 2013 08:40
To: isa...@onetel.com
Cc: Ir Lai Liang Koong; Ir Abdul Razak Haji Kamarudin
Subject: Malaysian abandoned housing projects

 

Dear Sir,
 
We had a meeting regarding this project on 30th May 2013 due to several complaints from purchasers. The developer attended the meeting together with a few of the purchasers.

For your information, any service apartment that was built before 2007 is given an exception to acquire a Developer License. This exception is given by our own Ministry of Urban Wellbeing, Housing and Local Authority. Therefore this project that was start developed around 2007 is included in this category. This exception given no authority to Private Housing Monitoring Division to monitor this project.

The division that have authority to investigate and take action according to the Act 118 : Housing Development (Control And Licensing) 1966 for this kind of project is Enforcement Division. We already forward your complaint to Enforcement Division regarding this issue. Herewith attached the person in-charge contact no. for this project. MR. GUNASEGARAN NAIDU A/L DEVARAJULU (email: gunas...@kpkt.gov.my / contact no.: 603 – 8891 4003).
 
For us to provide the letter about 'Delayed Project Confirmation', we need a copy of your Sale And Purchase Agreement and the Bank full address. This to be include in the letter and for our perusal. Kindly include your full address and any copy of identification card or passport for our verification.

Kind regards.

Mohd Tarmizi bin Mat Tanda,
Assistant Director,
Private Housing Monitoring Division
National Housing Department
Ministry of Urban Wellbeing, Housing and Local Authority
Tel: 603-8891 4201   Fax: 603-8891 4125

[mpmcginty]

Hi All,

 

Just to let you know, I've written to CIMB and asked them if they would hold by final 10% payment until further notice from me. I stated that I had asked the developer about the LDs and had no response, hence wanting to hold payment until there had been further communication. LDs and final payment are both due on the same day.

 

I've also asked CIMB if they will re-finance and they seem to be taking the proposition seriously, they had the property valued three time and all valued the property at 470,000 RMB.

 

I may be able to re-finance from 60 to 70 or even 80% releasing a bit of money.

I'll keep you informed of the outcome.

Any more news on the development, we seemed to have some good leads from the facebook group and Ian had a lead from a Malaysian government department?

Many thanks for everyone's efforts.

Matthew

 

 

[mpmcginty]

My apartment is type E, 3- bed I bought it for 386, 100 RM.

 

So it's appreciated over 6 years by approx. 85,000 RM.

 

The exchange rate has moved from approx. 7 RM to the £ to 5RM to the £, so gains there as well.

 

Matthew

[mpmcginty]

From Nick:

 

Matthew,

 

I paid pretty much the same, good to see the appreciation, although in Sterling terms my mortgage has also gone up by 40%....

 

As a means of keeping pressure on RK I have sent an updated statement of account - see below should anyone want to use the same format. Believe on solid ground regarding set off as common practise in Malaysia. Other members believe this is breach though.

 

Also found out about Tribunal for Housebuyers which appears to have teeth for claims below RM 50,000. These cannot simply be ignored - link attached.

 

I would like other members to start to file claims for the LD's on the Common Areas, I will one month after posting my letter to RK Group. If nothing else this will harass them. These are both due & below the above threshold.

 

http://www.consumer.org.my/index.php/complaints/rights/252-the-tribunal-for-homebuyer-claims

 

Whilst it does seem that there is some work ongoing, I believe the contempt with which RK Group is treating us means that they will do everything they can to delay completion of the units, the mall looks like it's struggling so I don't see what has dramtically improved their finances to the point that they will either give us VP this year or pay us LD's of any form. I want to force them to talk to us if nothing else but as secondary aim want the money as it is not insignificant & clearly due in the SPA. They owe me & on same basis you & everyone else approx. GBP 30k in LD's now per unit. I'd be amazed if they have the funds to pay this & still suspect they will go into liquidation or once mall is complete or more positively try to negotiate with us to waive the LD's in return for VP, e.g. if they came to me & agreed to a completion by end say March 2014 which if they achieve then no LD's or if fail then LD's increase further by additional amount, then I'd agree to it.

 

If 20 or 30 of these claims start hitting them with further fines accruing daily it could force their hand to pay at least some form of LD's now & increasing the need to start communicating properly.

 

Anyway, let's hope for the best & plan for the worst.

 

Please could you post this to the forum as I gt the emails but cannot reply all.

 

Might also be worth checking with the local facebook group what their view on the LD's is. Are they taking any action?

 

 

Regards,

 

Nick

 

 

 

 

Copy of statement of account as an example:

 

____________________________________________________________________________________

9^th  October 2013

 Mr. Christopher Chin

RK Group Holdings (M) Sdn.Bhd.
S-3, Level 2, Axis Atrium @ Axis Pandan,
Jalan Cempaka, Taman Cempaka,
68000 Ampang, Selangor, MalaysiaTel: 03-92821008

Dear Sirs,

We refer to our previous letter dated 21^st June 2013 (copy attached for ease of reference) in respect of the Sales and Purchase Agreement (SPA) between RELIABLE CAPACITY SDN BHD (Company No. 349530-A)  and NICHOLAS HANSON MURRAY executed 17^th August 2007. We note that we have not received any response to this letter nor previous ones in this regards and would again re-iterate our previous statements.

The current and ongoing delay to the completion of the works and delivery of Vacant Possession is a serious breach of contract that is causing considerable financial burden to us.

Under the term of the Sales and Purchase Agreement, in the event of failure to complete the works as stipulated therein provides for the compensation of damages as set out in our previous correspondence. For the avoidance of doubt these provisions are as follows. 

 

26.       Time For Delivery Of The Vacant Possession

26.1     Vacant possession of the said parcel shall be delivered to the purchaser in the manner stipulated in clause 27 on or before 17^th May 2010.

26.2     If the vendor fails to deliver vacant possession of the said parcel in the manner stipulated in clause 27 by the time stipulated in sub-clause 26.1, the vendor shall be liable to pay the purchaser liquidated damages calculated from day to day at a rate of ten per centum (10%) per annum of the purchase price from the expiry date of the delivery of the vacant possession in sub-clause 26.1 until the date the purchaser takes vacant possession of the said parcel. The vender shall pay such liquidated damages to the purchaser immediately upon the date the purchaser takes vacant possession of the said parcel.

26.3     For the avoidance of doubt, any cause of action to claim liquidated damages by the purchaser under this clause shall accrue on the date the purchaser takes vacant possession of the said parcel.

28.       Completion Of Common Facilities

28.1     The common facilities serving the development shall be completed by the vendor on or before 17^th May 2010.

28.2     If the vendor fails to complete the common facilities in time the vendor shall pay immediately to the purchaser liquidated damages to be calculated from day to day at the rate of ten per centum (10%) per annum of the last twenty per Centrum (20%) of the purchase price.

            The original Completion Date as stipulated in the SPA is 17^th May 2010 and is now more than three years overdue. Therefore based on this delay the accumulated liquidated damages currently amount to the following sums rounded to three years & 4 months for ease of calculation.

Clause 26.2 – Vacant Possession

Purchase Price RM 382,000.00 x 10% x 3.25 years = RM 124,150

Clause 28.1 – Common Area Completion

Purchase Price RM 382,000.00 x 20% X 10% X 3 years = RM 24,830

Total Liquidated Damages to 16^th September 2013 = RM124,150 + RM24,830 = RM148,980.

We shall update the liability as and when necessary and advise you in due course.

Notwithstanding that the provision that liquidated damages for delay only accrue on the date of Vacant Possession, the breach caused by the delay is now of such serious nature that this is no longer considered applicable . In any case the final 10% of the purchase price also becomes due upon Vacant Possession and therefore would be subject to set off at that time.

Therefore it is our intention to address the serious breach of contract by way of equitable set off which is an accepted legal principle supported under law. With this regards we have detailed out our statement of account as follows.

 

Purchase Price                                                           RM 382,000.00

Less LD’s for late completion of common Areas       RM  24,830.00

Sub total                                                                      RM 357,170.00

Less LD’s for Late Vacant Possession                       RM 124,150.00

Total Amount Currently Payable by the Purchaser   RM 233,020.00

Less total Value released by the Purchaser               RM 305,600.00

Net overpayment to be repaid by the Vendor            (RM 72,580.00)

 

The above calculation is based on the current delay experienced to date however we have been advised that the likely completion will be in 2014 therefore if we forecast completion by 16^th May 2014 then the amount due will increase accordingly.

We repeat our request of 21^st June 2013 to which we have had no reply - would you please advise when we may expect to have Vacant Possession of our unit. The extremely late delay to the works is causing severe financial burden to us and it is unfair to subject us to this particularly as you have failed to offer any further updates or any plan to when the works will be complete.

Unless we receive an appropriate response from you then we shall have no option to pursue this be whatever means necessary to bring it to resolution, including taking the LD’s for late completion of the Common Areas to the Tribunal for Homebuyer Claims.

We trust that you appreciate the severity of the situation and do your upmost in which to make good the damage caused by your breach of contract.  In the meantime we have instructed our bank to ensure no further monies are released to you as the net balance of the account shows a current overpayment to you of RM 72,580 which continues to grow.  We expect that your company repays the outstanding amount in full in due course.  

With best regards,

 

Nick

 

[Wendy Yates]

Hi

My name is Wendy and my partner Alan and I bought in Axis Crown Premier and have for many years been trying to find out what is going on. I have contacted PF many times and just this week Katie informed me that there was a 'google group' and sent me the link!!! I am disgusted that not only were we not getting any reports/updates from RK group, on the odd occasion that they sent some but she knew that fellow purchasers were coming together to try to resolve this mess and didn't bother to tell us. How many more are there like us?  I have tried to look through all the past info but would anyone please give me a simplified version as to what has happened and where we are up to and what we need to do to join the fight with you?  I also found a website where others were talking about Axis Crown and I asked if anyone there could give me an update - here is the reply

hi - am not an owner of axis crown but i met with a rep of the developer recently on another matter and he (terrence) told me that axis crown
will be vped soon in a couple of months or so..but having said that, this project has been delayed for so long so i am a bit sceptical..

anyway, from what i have seen to date, the exterior of Axis atrium/Fiesta (mall) has been repainted and it does look modern and contemporary = 
really nice i must say..if you are not aware the developer has been working with a consultant on giving the mall a whole new look and total face lift
and also to ensure that axis crown will be completed and handed over to owners eventually - meaning the project WILL BE completed...

no worries, the building is still standing..the developer was facing some financial difficulties but with the disposal of some assets, i believe they have
the $$$ now to complete the project. 

btw there is no one living there becoz no VP yet ..but of cuz u can still sell before completion ie at subsale ..

Wendy

[isavage]

Hi Wendy Welcome

 Yes it’s a mess all round! Sounds like you know more than us if there is talk of another delay beyond this year, as it’s the first time I have read it. Please share your source for this info & any other group relating to the development.

 Kind regards

 Ian Savage   

[Andrew Guntert]

I cannot believe Katie's latest email - below for those who haven't yet seen it! Does anyone have any contacts with any financial journalists who would be interested in writing a factual article describing this extraordinary saga. There is no need for anything to be exaggerated or anything which would give a lawyer too much stress! Just the facts!! I have suggested to Ray Withers that he should get on a plane over to KL and find out exactly what is happening!! I think my patience has just about gone now!!

I know it has been sometime since you have received an update with regards to Axis Crown.

 

I have recently been advised that although work is on-going at the retail units it would seem that progress with Axis Crown itself is very slow. As yet no reason has been given for this and I have not yet received a response from the developer. I have been told that completion is now expected to be mid 2014.

 

I will of course continue to push the developer for answers and would recommend that you all do the same.

 

As soon as I have further news I will of course be in touch.

 

Kind regards

 

Katie

[isavage]

YES THIS IS RUBBISH !

Think it’s time to make a lot of media noise as suggested! PF will feel the pain & may like to be more proactive. will do some networking ASAP.

Can someone head the legal effort again?

We need to push as the Banks holding the mortgages seen as none interested as PF !?!

This a good point made by Chris, that we have NO IDEA what quality we will see if any delivery is made if we allow things to continue as they are seeing RK have demonstrated their contempt for any kind of contract we had with them.

I will also chase up the KL Gov department i was in contact with in the summer.

Ian Savage

[satk...@gmail.com]

Dear All

 

Today I have begun the process of trying to get CIMB bank to accept that I will be stopping payments on my loan. I did find them helpful and sent them as many details as I could. The big stumbling block seemed to be that Axis Crown was not registered as an abandoned project. I will keep you informed as to how this progresses.

 

Has anyone else had any dealings with CIMB bank on this matter. Any advise from anyone who has gone down this path would be appreciated.

 

Unfortunately the delays from RK group could go on for years. The lack of professionalism from this developer astounds me. So far no notification from them about the new date of mid 2014. I am also presuming that the buyers in this group who sent letters to RK group received no response.

 

Stephen 

[isavage]

Stephen you will see when you log in to our group there is another thread that is about CIMB.

I did what you are trying to do 2 years ago & got nowhere. I have not paid anything to the bank since then & they seem unable to help me with any questions etc... & me trying to do the right thing.

It’s your risk as to what happens, for me No more money is going to the "investment" until i see a clear path to delivery.

Ian Savage 

 

[isavage]

Hello everyone

 As I see no mail happening so I guess Nothing has changed & we can expect the none delivery of any property any year soon! For those with mortgage this is ridiculous as is the monthly loss of intrest never to be made up from rent or like a number of us who have stopped paying any mortgage risk reposition or fines at completion.

 As I said I would l did write back strongly to KL Gov departments & now a month on still no response, so looks like we are on our own still. I also suggested we turn up the pressure on PF & have decided I will start with AIPP (Association of International Property Professionals) who PF are founder members & proudly stated on their front page, further even winners of best agent 2013 !! So I suggest we use the opportunity to let our grievances be known to AIPP & follow their complaints procedure here:

http://www.aipp.org.uk/consumer/complaints-about-aipp-members/2/   

 

If we all take a short time to do this & I continue with my media campaign in the press we may well make a large enough impact to get PF moving to help us get this process to some sort of conclusion. One small point I have net been able to work out is if AIPP is part controlled/owned by PF!?

 I think enough said for now.

 PLEASE RESPOND TO THIS MAIL TO SAY YOU ARE GOING TO BE BOTHERED TO WRITE TO AIPP SO WE CAN GET SOME GROUP FEELING OF MOMENTUM GOING WITH THIS.  

 Wishing us all a speedy root to resolution with the Axis nightmare

 Ian Savage  

[isavage]

From: Andrew Guntert [mailto:andrewg...@gmail.com]
Sent: 26 November 2013 09:27
To: isavage
Subject: Re: Axis update

 

Ian, yesterday I asked Katie to arrange a site/apartment visit for me when i go to KL at the end of December. I'm now waiting to see if she can do that (via Complete Ltd who arranged my previous visit a long long time ago).

If she does, my plan would be to take lots of photos and feed back what i can about the site etc. If she doesn't then I will also write to AIPP

Regards

Andrew

---------------------------------------------------------------------------------------------------------------------------------------

Hi Andrew & others reading the Blog

 That’s great news one of us will have boots on the ground soon. I very much hope that PF will step it up & can help you get as much access as possible. I would be interested to know what you think of complete as well as I’m not sure about their abilities to do much to help or will be just good for final delivery & let of the units (oh imagine that happening one day !!)

 I would suggest that Kate who set this Google group up is aware of anything that is posted on here so i guess you may find some help coming forward from PF but mostly as they don’t want clients contacting the AIPP.

 I strongly suggest to everyone that time has proven that unless we stand up & take action nothing will happen for us. Seeing there is little enthusiasm for a legal approach right now at minimum we should all write to AIPP. Regardless of any words from PF or RK. We need action & results, nothing less & until that is delivered then it is each of our responsibility to fight for YOUR investment in this project. We can do this most effectively working as a group putting presser where we can.  

 I sure we all wish you every success with your travel & planed site visit Andrew.

Would you also be seeing CIMB Bank & asking them some questions?

 Best regards

 Ian   

[isavage]

New News from KL from PF today in my email. did anyone else get it?? if not will post it here.

Seems to be that AIPP has some motivating power!

Ian

[Chau Shum]

Very disappointing that the trip to KL did not result in access to the sight.  Photos of the shopping area shows lots of closed units. December update is late (again!). 

I am not sure what we can do as a collective, but I am willing to participate. If anyone is writing to official circles, then maybe posting a draft letter which rest of us can use would be useful to reduce inertia. Thanks,

Chau

[Andrew Guntert]

the Axis developer seems to have very good PR and the ability to find a journalist who asks no questions. I make no further comment!

Follow the link to see an article just published in one of Malaysia's biggest newspapers

http://www.thestar.com.my/Business/SME/2014/10/10/Distinctive-developer-Developers-experience-as-architect-pays-off/?style=biz

[Jonathon Gowen]

All,

What is the latest update on this project? Any hope to get out of this nightmare situation?

Best,

Jonathon