KUALA LUMPUR (March 1): OCR Group Bhd said today a RM324 million contract to undertake a 1Malaysia Civil Servants Housing (PPA1M) project in Precinct 5, Putrajaya has been cancelled.

In a filing with Bursa Malaysia today, OCR said the letter of award (LoA) it received from Damansara Realty (Johor) Sdn Bhd (DRJ), a subsidiary of Damansara Realty Bhd (DBhd), for the appointment of OCR as the turnkey contractor for the PPA1M project, which spans 11.9 acres, has been terminated.

The cancellation was due to the government’s move to unify the development of affordable homes under the ministry of housing and local government.

"Upon the execution of the LoA, OCR had paid RM3.18 million as deposit to DRJ and the said sum is refundable by DRJ to the company,” said OCR.

On Nov 30, 2015, DBhd had inked the agreement with Putrajaya Corp to develop the project, which comprises 1,350 residential units and 45 commercial units, at a gross development cost of RM467.3 million.

DRJ had then appointed OCR as the turnkey contractor for the project.

OCR shares rose 0.5 sen or 2.08% to close at 24.5 sen today, with 402,700 shares traded, giving it a market capitalisation of RM78.86 million. DBhd shares settled 2.5 sen or 6.49% higher at 41 sen, with 1.77 million shares done, for a market value of RM130.53 million.