KUALA LUMPUR (Feb 15): UEM Sunrise Bhd and Mulpha International Bhd have called off their joint venture (JV) for a RM5 billion gross development value mixed development in Nusajaya, Johor.
In separate filings today, the two companies said the development fell through as the conditions precedent, which included the obtaining of written approvals and planning approvals for the parcels of land, had not been fulfilled or waived during the conditional period.
The conditional period had previously been extended twice — once to Feb 15, 2020, and subsequently to Feb 15, 2021.
The two companies said the termination of the master agreement does not have any effect on their respective issued and paid-up share capital as well as shareholdings of their substantial shareholders.
The venture was first announced on Feb 16, 2016, comprising the development of three parcels of land, measuring a total of 195.27 acres over 20 years by a 50:50 JV company of the two parties.
Planning for the development was supposed to commence in the second half of 2016, with Phase 1 of the project previously targeted to be launched in 2018.
UEM Sunrise shares closed unchanged at 40 sen, valuing the company at RM2.02 billion.
Mulpha International rose one sen or 0.78% to RM1.30, giving a market capitalisation of RM415.31 million.