KUALA LUMPUR (July 24): Property developer Axteria Group Bhd (KL:AXTERIA), formerly known as Acoustech Bhd, has scrapped plans with Alpha Astral Properties Sdn Bhd (AAPSB) to jointly undertake a mixed development project on land measuring 83,037 square metres in Johor Bahru.
The reason for the termination was due to the condition precedent not being met prior to the end of the extended condition period.
In a filing with Bursa Malaysia on Wednesday, Axteria said the two companies have mutually agreed to terminate the joint venture (JV) agreement signed in 2022. "Following the termination of the JV agreement, the agreement is null and void and the parties will have no further claims against each other," it added.
Axteria's wholly-owned subsidiary Axteria Development Sdn Bhd (ADSB) had on Nov 22, 2022 entered into an agreement with AAPSB for the proposed JV. AAPSB is the owner of the development land.
Under the JV, the two companies had plans to develop a portion of the land into a mixed development consisting of two blocks of small-office, home-office suites totalling 792 units, a four-storey corporate office, a four-storey spa, a boutique hotel, an office and co-working space, a three-storey retail showroom space, a seven-storey multi-level carpark and a clubhouse.
At the time, Axteria announced that based on its preliminary assessment, the development of plot one of the proposed project was anticipated to have a gross development value of RM413.2 million and a gross development cost of RM353.5 million.
Development of plot one of the proposed project was expected to commence in the second quarter of 2024 and be completed in the second quarter of 2028.
Axteria said the termination will not have any effect on the group's issued share capital and substantial shareholders’ shareholdings, and is not expected to have any material effect on its net assets per share and earnings per share as well as gearing for the financial year ending Dec 31, 2024.
Axteria shares closed unchanged at 16.5 sen on Wednesday, giving it a market capitalisation of RM118.28 million. The stock has risen 10% so far this year.