OCR Group terminates joint venture with D’nonce on affordable housing project
OCR Group Bhd has terminated its joint venture (JV) agreement with D’nonce Technology Bhd to develop affordable apartments in Seberang Perai Tengah, Penang.
OCR did not mention the reason for the cancellation of the agreement in its filing with Bursa Malaysia yesterday.
The JV between OCR’s wholly-owned subsidiary Fajar Simfoni Sdn Bhd and D’nonce’s unit D’nonce Properties Sdn Bhd was signed in May last year.
The two parties agreed to develop a 19-storey block housing 281 units of flats and a seven-storey car park podium on 6,774 sq m of land belonging to Tan Than Kau and Tan Tiang Yang.
The project was worth RM85 million in gross development value.
In its filing, OCR said the group reserves the rights to claim against D’nonce Properties under the agreement and the law.
“The termination will not have any material effect on the earnings or net assets of OCR for the financial year ending Dec 31, 2020,” the group added.
Source: EdgeProp.my
Is good to cancel since this is low rise project and will waste the land itself, it is more suitable to build high rise to fully utilise the space.