Yong Tai scraps JV mixed development project in Puchong

KUALA LUMPUR: Yong Tai Bhd’s plan to acquire two parcels of freehold and contiguous land in Puchong, Selangor, for a potential property development project has fallen through.

In a filing with Bursa Malaysia, the tourism-related property developer said it and the vendors of Terrawest Resources Sdn Bhd, which owns the 1.5-acre land, had entered into a memorandum of understanding (MoU) to mutually and amicably terminate the memorandum of understanding inked in August 2015.

Yong Tai said the parties were unable to agree and finalise the terms of the proposed acquisition of Terrawest, which would have led to a mixed development project with an estimated gross development value (GDV) of RM173mil (excluding a hotel tower also to be built).

The Terrawest MoU had been extended several times since 2015, with the last extension being made in May this year.

Five MoUs were signed on Aug 3, 2015.

In April this year, Yong Tai also mutually and amicably terminated an MoU to buy the Johor Baru land that was also signed then.

The MoU was for acquiring Land & Build Sdn Bhd (L&B), which holds the development rights to develop two parcels of freehold land totalling 1.77 acres in Johor Baru, from two individuals.

The land had been intended for a mixed development with a gross development value of RM363mil, comprising retail and small office versatile office (SOVO) units, hotel and office suites.

The termination was also due to the parties being unable to agree and finalise the terms of the proposed purchase.