PETALING JAYA: Telekom Malaysia Bhd (TM) and UEM Sunrise Bhd (UEMS) have decided to cancel the proposed development of a high rise mixed development along Jalan Raja Chulan in Kuala Lumpur.
In a filing with Bursa Malaysia, TM said the parties have mutually agreed for the joint land development agreement (JLDA) to be rescinded upon expiry of the extension of the conditional period this Sunday.
"The rescission of the JLDA will not have any material financial impact to TM Group," it said.
In a separate filing, UEMS said the JLDA was rescinded subsequent to the non-fulfilment of the conditions precedent. Both parties have also agreed to refund the deposit to UEMS' indirect wholly owned subsidiary Sunrise Quality Sdn Bhd.
To recap, TM, UEMS and Sunrise Quality entered into the JLDA on May 27, 2016 for the development of TM's 1.69-acre land in Kuala Lumpur.
The proposed high rise mixed development comprised serviced apartments and retail elements, which was to be planned and developed by Sunrise Quality.
Under the JLDA, Sunrise Quality was to pay TM a guaranteed land cost of RM150 million as well as a 5% share of the gross development value of the project.
On May 28, 2018, TM said the parties mutually agreed to extend the conditional period of the JLDA for a period of three months until Aug 26, 2018.
TM's share price fell 0.28% or 1 sen to close at RM3.59 with 3.98 million shares traded while UEMS' share price remain unchanged at 92.5 sen with 682,500 shares traded.