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Monday, March 31, 2025

Hydroshoppe to hold press conference as KL Tower dispute deepens

 

Free Malaysia Today
Last week, LSH Capital’s subsidiary signed a 20-year lease agreement with the federal lands commissioner to manage KL Tower. (Envato Elements pic)

PETALING JAYA
The dispute over Kuala Lumpur Tower’s operations looks set to deepen with the iconic skyscraper’s outgoing operators claiming they will be forced to vacate the premises at midnight tonight.

Hydroshoppe Sdn Bhd and Menara Kuala Lumpur Sdn Bhd said a press conference will be held at 11pm at the main entrance of KL Tower.

“Based on information we received, we have been made to understand that we will be forcefully evicted from KL Tower at 12am tonight by the police and Kuala Lumpur City Hall (DBKL),” they said in a media invite.

The two companies claimed that their eviction would be unlawful since they have a suit pending in court concerning the award of a 20-year concession to manage the tower to Lim Seong Hai Capital Bhd (LSH Capital).

FMT has reached out to DBKL, Dang Wangi police, and federal territories minister Dr Zaliha Mustafa for comment.

Last week, LSH Capital’s subsidiary, LSH Service Master Sdn Bhd, signed the lease agreement with the federal lands commissioner.

The agreement, effective from April 1, 2025 to March 31, 2045, grants the company the rights to about 4ha (10 acres) of land, including the KL Tower site, Tower Terrace and adjacent areas.

Hydroshoppe and Menara Kuala Lumpur filed a lawsuit to challenge the award of the concession, seeking RM20.13 million in losses and damages and for the concession to be transferred to them.

They claim there was an existing “understanding” pertaining to the tower’s management, and that LSH Capital had “induced a breach” of a contract they had agreed to with Putrajaya in August 2022.

LSH Capital said it was not privy to any prior agreement or discussion between the government and Hydroshoppe and Menara Kuala Lumpur.

It also said it would defend the suit and continue to fulfill its obligations under the 20-year agreement. - FMT

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