S P Setia Bhd said that its subsidiary, Setia Putrajaya Development Sdn Bhd (SPD), has issued a notice of arbitration against Putrajaya Holdings Sdn Bhd (PJH) on August 15, 2024.

PJH, the master developer of Malaysia’s administrative capital of Putrajaya, allegedly breached a 2002 development agreement that granted SPD development rights over certain lands in Putrajaya.

SPD is seeking RM69.5 million in damages for breach of contract and/or misrepresentation.

The arbitration is not expected to materially impact S P Setia’s financial performance or operations for the year ending December 31, 2024. — TMR