Malaysian property developer UEM Sunrise and telecommunications firm Telekom Malaysia have mutually decided not to proceed with the construction of a high-rise project at Jalan Raja Chulan in Kuala Lumpur, reported The Sun Daily.
According to a filing with the local stock exchange by TM, both parties have agreed to scrap the joint land development agreement (JLDA) once the extension of the conditional period lapsed on Sunday (26 August).
“The rescission of the JLDA will not have any material financial impact to TM Group,” it said in a statement.
In another filing, UEM Sunrise said the JLDA was invalidated due to non-fulfilment of the agreement’s terms and condition. Nevertheless, TM intends to return the deposit paid by UEM Sunrise.
In May 2016, TM and UEM Sunrise signed the agreement (JLDA) to jointly develop the former’s 1.69-acre plot in the capital. The said land was supposed to be used for a high-rise project featuring retail space and serviced apartments that was supposed to be designed and built by UEM’s fully-owned unit Sunrise Quality.
In return, TM would get RM150 million as payment for the land and a five percent share of the mixed-use project’s gross development value (GDV).
The on 28 May 2018, both parties consented to prolong JLDA’s conditional period by three months until 26 August this year.
Image sourced from UEM Sunrise
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