Meda Inc aborts plan for RM882mil property project in KL

An artist's impression of The Arc @ Cyberjaya

KUALA LUMPUR: Meda Inc Bhd has aborted the purchase of 4.18 acres in the Chan Sow Lin industrial estate area of Kuala Lumpur where it had planned to undertake a mixed development project with an estimated gross development value of RM882mil.

The property developer, which is also involved in hotel operations and palm oil cultivation, told Bursa Malaysia that after due consideration and taking into account the current outlook of the property industry, it and the land’s vendors had mutually decided to cancel the deal.

Meda said its board felt this move would allow the company to focus on identifying other opportunities to acquire land banks/development projects or secure joint-venture arrangements which are feasible and will benefit the group as a whole, said Meda Inc.

Meda had in June 2015 signed a conditional agreement to buy 100% equity interest as well as 4 million redeemable convertible preference shares in BCM Holdings Bhd, the owner of the two contiguous parcels of freehold land, for RM180mil from two individuals.

The finalisation of the deal had been long delayed, with Meda and the vendors extending the deadline for fulfilling the conditions precedent no fewer than eight times. The latest entension was to Feb 26, 2017.

Meda had proposed to develop serviced apartments and commercial properties on the land that would yield about RM176.4mil in gross development profit. The development was initially targeted to begin in the fourth quarter of 2015, for completion within four years.