KUALA LUMPUR, Bandar Malaysia Sdn Bhd, the state-owned master developer of the Bandar Malaysia project, has agreed to pay compensation to Sim Leisure Group Ltd following the termination of their agreement to develop an Escape theme park.
Bandar Malaysia sold the 486-acre land, the site of the former Royal Malaysian Air Force base, to KLCC (Holdings) Sdn Bhd last year.
In a filing with the Singapore Exchange, Sim Leisure said it would have no further claims against Bandar Malaysia once the undisclosed compensation is received under the settlement agreement. The company is also required to return the project site on Sept 15.
“The parties shall keep all details and negotiations concerning the termination settlement strictly private and confidential,” Sim Leisure noted, adding that the settlement amount will be “material” to its earnings this year.
The settlement comes after Sim Leisure alleged that Bandar Malaysia breached its obligations by cancelling the theme park deal and selling the land to Petroliam Nasional Bhd (Petronas). Last year, Bandar Malaysia sold the 486-acre former Royal Malaysian Air Force base site in Jalan Sungai Besi to KLCC (Holdings) Sdn Bhd, a wholly owned subsidiary of Petronas.
Following the sale, Sim Leisure received a termination notice. The company had signed an agreement in November 2023 to develop and operate a 75-acre Escape theme park at Bandar Malaysia.
Sim Leisure currently operates the Escape outdoor adventure park in Penang, the Escape Challenge indoor park at Paradigm Mall, Petaling Jaya, and KidZania Kuala Lumpur.
