PETALING JAYA: Dutaland Bhd
is seeking to terminate its 23-year-old consortium arrangement with Olympia Industries Bhd, citing differences in strategic direction and misalignment of interests in the development of the remaining landbank.
In a filing with Bursa Malaysia, Dutaland said the proposed termination involves the consortium agreement dated Feb 14, 2003 between its full subsidiary KH Estates Sdn Bhd (KHE) and Olympia Industries’ wholly owned unit, Olympia Properties Sdn Bhd (OPSB), as well as a development agreement dated Aug 10, 2007 involving KHE, OPSB and KH Land Sdn Bhd as the appointed developer.
Dutaland further noted the decision follows its assessment that the current consortium and development framework no longer allows KHE to effectively pursue its objectives for its share of the undeveloped landbank.
It added that differences in strategic direction between the two parties had also contributed to the decision.
“These challenges include, but are not limited to, the difference in business direction between the company and Olympia Industries in terms of the future plan for the undeveloped land,” it said.
The undeveloped land comprises nine parcels, totalling about two million sq ft, in Kuala Lumpur.
