KUALA LUMPUR: A proposed joint-venture (JV) mixed development project in Sepang involving Nexgram Holdings Bhd
and Asdion Bhd has failed to receive the land development order (DO) from the Sepang Municipal Council.
In a filing with Bursa Malaysia, the software developer said following the council’s rejection, the land vendor Hijrah Murni (M) Sdn Bhd had sent to Top Valley Properties Sdn Bhd - which was to be the project’s joint developer with Nexgram Land - a notice terminating the sale and purchase agreement.
“Nevertheless, the company was informed that Top Valley is in the on-going process of re-negotiating terms and timelines for new DO submission,” added Asdion, which plans to diversify into property development via a JV arrangement with Top Valley.
In December 2014 Top Valley signed an off take agreement cum sale and purchase agreement (SPA) with software developer Nexgram Holdings Bhd’ unit Nexgram Land Sdn Bhd whereby they would develop and sell to MyAngkasa Bina Sdn Bhd the entire mixed property development project on 2.154ha. Meanwhile, Top Valley entered into the land SPA with Hijrah Murni.
The project, to be undertaken on a piece of agricultural leasehold Malay reserved land, was to comprise three tower blocks comprising a total of 659 units of serviced apartments and 10 units of commercial/retail shops with a gross development value of RM297.39mil.
Top Valley’s entitlement from the project was estimated to be RM13.4mil, and Asdion was to have a participation right in Top Valley’s entitlement and to share the project benefits (80% share or RM11.9mil).
Bursa Malaysia Securities considered it a related party transaction as Datuk Tey Por Yee was a common major shareholder of both Nexgram and Asdion, and See Poh Yee was a common director of both.
In the latest statement On Monday, Asdion said it was informed that for the purpose of the offtake agreement cum SPA with Nexgram Land and MyAngkasa which was still subsisting, Top Valley was currently exploring all possible viable options, including sourcing for an alternative suitable land and continue negotiating with the land owner for resubmission of the DO.
“The board had discussed the letter in a board meeting held on March 14 and requested the management to provide further information for deliberation before making any decision,” it said.
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