Symphony Life sues former partner for RM150 mil over terminated joint development agreement

• The property developer said its wholly-owned subsidiary Symphony ORIC Development Sdn Bhd (SOD)’s suit against Open Road Asia Sdn Bhd (ORA) pertains to a RM75 million deposit ORA made as part of the joint development agreement.

KUALA LUMPUR (March 31): Symphony Life Bhd is suing its former development partner for RM150 million over a terminated agreement to jointly develop residential condominiums in Langkawi.

The property developer said its wholly-owned subsidiary Symphony ORIC Development Sdn Bhd (SOD)’s suit against Open Road Asia Sdn Bhd (ORA) pertains to a RM75 million deposit ORA made as part of the joint development agreement.

It added that when the agreement was inked in April 2021, ORA’s directors Goh Poo Eng and Roslizan Nekmat had provided a guarantee towards the refund of the deposit in the event the agreement’s conditions precedent are not fulfilled.

SOD terminated the agreement in February this year after ORA failed to fulfil the conditions within the stipulated timeframe, said Symphony Life in a bourse filing

Under the suit filed in the High Court, SOD is claiming from ORA, Goh and Roslizan for a refund of the RM75 million deposit as well as another RM75 million in agreed liquidated damages from ORA.

Symphony Life noted that based on the opinions of its lawyers on the facts of the case, SOD has a “good chance” of success in its claim against ORA and its directors.

“Pending the outcome of the litigation process, the filing of the legal action is not expected to have any immediate material financial impact on the group,” it said, adding that the suit does not affect its ongoing operations.

Shares in Symphony Life ended unchanged at 41.5 sen on Friday (March 31), giving the group a market capitalisation of RM297.33 million.