The Penang state government has agreed to give RM20m in compensation to Boustead Holdings Bhd for scaling down the height of its hotel in the George Town heritage zone from 12-storeys to five storeys. Continue reading »
Boustead Holdings Bhd has announced that it has not yet struck a deal with the Penang state government on the terms of the compensation for the scaled-down Royale Bintang Hotel project in George Town’s world heritage site core zone.
The firm said the compensation may include BHB being allowed to reclaim land on Penang island.
The question to ask is, should the local government compensate or fully compensate a firm for loss of future profits or gross development value arising from something that is beyond the government’s control – in this case, a Unesco heritage listing, with its attendant zoning requirements?
Boustead made the announcement in response to an article in The Edge. Continue reading »
A developer is threatening to sue the Penang state government for tens of millions of ringgit.
The developer is one of four that was compelled to scale down its project to abide by Unesco guidelines for the preservation of George Town’s world heritage site listing.
Instead of timidly conceding the possibility of paying compensation (as it has in the past, thus possibly having the opposite effect of emboldening developers to sue the government), the Penang state government should publicly name the developer concerned and challenge it all the way.
A few Penangites already know who the developer is, but I will leave it to the Penang state government to come out and formally identify the developer.
