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Property News

Ecobuilt’s RM148m police office building JV project falls through

KUALA LUMPUR (Nov 21): Ecobuilt Holdings Bhd said it is not proceeding with its plan to build a 24-storey police office building in Kuala Lumpur jointly with another company, after it was unable to comply with the terms of the deal within the stipulated period.
In a filing on Monday, Ecobuilt said its wholly-owned subsidiary Eko Bina Sdn Bhd (EBSB) has received a notice of termination of the RM148.04 million project from the joint-venture partner TJ Civil & Structural Contractor Sdn Bhd (TJCS).
“EBSB was unable to obtain the bank guarantee for the performance bond (amounting to RM7.4 million) as EBSB failed to fulfil the bank’s requirement,” Ecobuilt said in a bourse filing on Monday.
EBSB also failed to provide the contractor’s all risk insurance and workmen’s compensation insurance, corporate guarantee to TJCS, and the construction industry development board levy.
On Aug 28, Ecobuilt announced that EBSB would be forming a JV company with TJCS for the project, for which TJCS has been appointed as the main contractor by PNB Merdeka Ventures Sdn Bhd. EBSB was to be paid 49% of the payment that TJCS receives to undertake the construction work of the project from PNB Merdeka.
The group said that the termination will not have any material effect on the group’s earnings for the financial year ending May 31, 2024.
However, Ecobuilt said that the group and EBSB are seeking legal advice to determine the next course of action to negotiate with TJCS.
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Source: EdgeProp.my

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