KUALA LUMPUR: The future of the 1,120-unit Residensi Wilayah's Pangsapuri Salak Selatan project remains uncertain as the developer's judicial managers plan to appeal a High Court ruling that cancelled its joint venture agreement with the landowner.
Housing and Local Government Minister Nga Kor Ming said that the project, developed by Surrealist Communities Sdn Bhd under the Residensi Wilayah (Rumawip) programme, was classified as a sick housing project on Aug 22, 2021, with construction 87.5 per cent complete.
"The ministry always strives to protect the rights of homebuyers by ensuring the management of housing projects is well executed so that projects do not fall into the 'sick' or 'abandoned' categories.
"This includes the Pangsapuri Salak Selatan project, which is a Regional Housing Programme (Program Rumah Wilayah)," he told the Dewan Rakyat today.
Baker Tilly Insolvency was appointed as registrar under a Shah Alam High Court order on March 28, 2025, to manage the developer's affairs, review its rights and liabilities, and protect its assets.
The registrar was defending the developer's position in a dispute over the termination of its joint venture agreement with landowner Potensi Mestika Construction Sdn Bhd, with the aim of preserving the developer's rights and rehabilitating the project.
However, on Sept 30, the court ruled in favour of Potensi Mestika Construction's bid to cancel the agreement, citing the developer's failure to complete the project within the stipulated period.
"Following this decision, the judicial managers informed the ministry that they intend to file an appeal against the High Court's decision," Nga said.
The matter remains subject to legal proceedings and the Court of Appeal's decision.
Nga said the ministry remained committed to protecting homebuyers' interests and resolving sick and abandoned housing projects.
He was responding to Fong Kui Lun (PH-Bukit Bintang), who asked about alternative plans to rescue the project if the judicial managers' scheme of arrangement failed, including the possibility of appointing a rescue developer to complete all 1,120 units.
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