KUALA LUMPUR (March 23): Jiankun International Bhd said its failure to pay the first advance of RM2 million in time led to the termination of the joint venture agreement (JVA) it inked with Menara Rezeki Sdn Bhd for the redevelopment of Flat PKNS Jalan Tun Razak in Kampung Baru.
The company said it could not make the payment within 30 days of the letter of demand dated Feb 4 because it was unable to obtain the relevant financial information within the agreed timeline.
“The company is still in the midst of discussion with the company lawyer for any further legal implication of the termination of the JVA and action against Menara Rezeki,” Jiankun said in a filing with Bursa Malaysia.
The company had received the notice of termination of the JVA from Menara Rezeki on March 21
The agreement, which was entered into on Jan 26, was for the redevelopment of the flats into a mixed residential and retail development with a gross development value of RM1.2 billion, over 28 times its market capitalisation of RM42.74 million, based on its closing price of 20 sen on Wednesday.
The 3.69-acre site along Jalan Tun Razak was to be redeveloped into 52-storey apartment towers and three towers with retail and residential components.
Under the agreement, the advance of RM2 million was to be utilised for initial expenses such as stamp duty, loan documentation, professional fees and consultant fees, with an additional advance of RM13 million earmarked as compensation to the existing owners of the land.
The project was previously slated to be the largest undertaken by Jiankun.