Nexgram announces Seychelles firm as joint developer for Angkasa Icon City

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KUALA LUMPUR (May 19): Nexgram Holdings Bhd has appointed a little-known company incorporated in the Republic of Seychelles as the joint developer and turnkey contractor for the development of the group's Angkasa Icon City (AIC) project.

Nexgram's wholly-owned subsidiary Nexgram Land Sdn Bhd inked a joint development agreement with ChinaAsian Capital Holding Ltd, the Seychelles company, today.

Nexgram, in a Bursa Malaysia filing, said the project will be built on land owned by another wholly-owned subsidiary, Nextnation Datacity Sdn Bhd.

AIC is a mixed commercial development in Cyberjaya, Selangor. It has been on Nexgram's to-do list since December 2014, when the group entered into two off-take agreements with MyAngkasa Bina Sdn Bhd for the latter to take up two significant development projects in Dengkil and Cyberjaya for RM1.44 billion.

AIC is the project to be built in Cyberjaya, and MyAngkasa — which is a subsidiary of Angkatan Koperasi Kebangsaan Malaysia Bhd — had pledged to buy the completed development back at RM1.15 billion.

The project, which is still awaiting approval from authorities, comprises one hotel, a block of small office/virtual office, and a block of service suite apartments.

The group said Nexgram Land and ChinaAsian Capital, so-called joint developer, will be responsible for designing, developing, constructing, reconstructing, carrying out and completing the project.

The joint developers will manage, market, advertise, sell, grant leases and tenancies of the properties developed on the land, said Nexgram.

Nexgram, however, did not provide any background information on ChinaAsian Capital, or its shareholders' information.

Not much details were provided on the land for the development either. However, according to Nexgram's past filing, the land spanned 5.91 acres.

As for the Dengkil project, the Sepang Municipal Council had in March last year rejected the development order (DO) for that. The project involved a leasehold agriculture plot measuring 2.15ha, and was meant to be a mixed property development worth RM297.39 million.

Subsequently, according to a March 15 filing last year, Nexgram said the acquisition of the Dengkil land has been terminated since the DO was not obtained, though the off-take agreement with MyAngkasa pertaining to the Dengkil project was still valid.

It did, however, said its other partner in the Dengkil project, Top Valley Properties Sdn Bhd, was in the midst of "exploring all possible viable options including sourcing of an alternative suitable land while continuing negotiation with the land owner for resubmission of the DO". No information about Top Valley has been disclosed so far.

Nexgram's share price closed unchanged at 4.5 sen today, giving it a market capitalisation of RM84.7 million.