Boustead aborts plan to buy land in Bukit Jalil for RM172.7m

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KUALA LUMPUR (July 11): Boustead Holdings Bhd has aborted its plan to buy multiple pieces of leasehold commercial land totalling 10.74 acres in Bukit Jalil here for RM172.78 million.

The original plan was to develop the land into a mixed development with an estimated gross development value of RM333 million.

No reason was given for the termination of the sale and purchase agreement (SPA) signed with its largest shareholder Lembaga Tabung Angkatan Tentera (LTAT) back in December 2016.

In a filing with Bursa Malaysia today, Boustead said its wholly-owned subsidiary Boustead Construction Sdn Bhd (BCSB) and LTAT have mutually terminated the SPA, and LTAT has refunded the deposit paid by BCSB under the SPA.

“Following the termination, neither party will have any further claim against the other under the SPA for any incurred losses or expenses,” it added.

Boustead noted that the termination will not have any material effect on the group's net assets (NA), NA per share, gearing, earnings and earnings per share for the financial year ending Dec 31, 2019.

LTAT is the single largest shareholder in Boustead, with a 59.45% stake.

On Dec 19, 2016, Boustead had announced that the 10.74-acre land comprises a parcel of vacant commercial land measuring 5.75 acres, a parcel of vacant carpark land measuring 0.96 acres and 70 parcels of vacant terraced commercial shop plots measuring 4.03 acres. All land leases expire on April 25, 2095.

The mixed development would feature 70 units of shop offices and a retail centre with a dedicated car park area, where the surrounding commercial developments including the proposed Pavilion Bukit Jalil and Bukit Jalil City condominiums, would act as catalysts for retail activities in the vicinity.

Boustead shares closed unchanged at RM1.18 today, giving it a market capitalisation of RM2.39 billion. It saw some 1.71 million shares traded. Year-to-date, the counter has retreated about 16% from RM1.41.