Boustead aborts plan for RM333m project in Bukit Jalil

This article first appeared in The Edge Financial Daily, on July 12, 2019.
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KUALA LUMPUR: Boustead Holdings Bhd has aborted plans 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) in December 2016.

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

“Following the termination, neither party will have any further claims 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 Boustead’s single largest shareholder, with a 59.45% stake.

On Dec 19, 2016, Boustead announced that the 10.74 acres comprise a parcel of vacant commercial land measuring 5.75 acres, a parcel of vacant car park land measuring 0.96 acres and 70 parcels of vacant terraced commercial shoplots 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.