MPHB Cap subsidiary Mimaland ends JV development plan

KUALA LUMPUR: The joint venture (JV) to redevelop the Gombak site of the once-popular but now-long-closed Mimaland recreational park has been terminated.

MPHB Capital Bhd (MPHB Cap) told Bursa Malaysia that its 98.2% owned subsidiary Mimaland Bhd, which owns the 324-acre land (comprising seven parcels), and Bandar Raya Developments Bhd’s (BRDB) unit Magna Senandung Sdn Bhd entered into a deed of termination on Monday.

The property developer did not provide any reason for the cancellation.

However, MPHB Cap said on the termination of the JV agreement, neither Mimaland nor Magna Senandung would have any claims against the other.

According to reports, MPHB Cap and Bandar Raya had planned to redevelop the site of Mimaland -- one of the country’s pioneer recreational parks that was closed in 1993 -- into an eco-friendly hillside, courtyard and water-fronted homes with an estimated gross development value of RM2.2bil. The development was to span 12 years.

In March 2011, MPHB’s subsidiaries had signed JV agreements with three different units of BRDB to develop the Mimaland land, 265.1 acres in Rawang and 80.9 acres in Penang.

It is not known whether the other agreements will be affected as well following the Gombak development’s termination.

MPHB Cap said the termination would not have any material effect on its and the group’s earnings, net assets and gearing for this financial year ending Dec 31.

BRDB, once listed on Bursa Malaysia, was taken private in October 2012.

MPHB Cap shares fell 4 sen to close at RM1.66 on Monday.

Corporate News , Property