IOI Prop ends JV; IJM bags LRT3 contract

By NG MIN SHEN

IOI Properties Group Bhd (IOI Prop) has terminated its memorandum of agreement with Hongkong Land International Holdings Ltd (HKLI) to jointly develop and manage a land parcel at Central Boulevard in Singapore.

In a statement to the bourse yesterday, IOI Prop said the termination was “for the non-fulfillment of certain conditions precedent”.

IOI Prop and HKLI had previously proposed to form a joint-venture (JV) company, Wealthy Link Pte Ltd, to jointly own and undertake the proposed land development and management.

“The termination will not impact the development of the Central Boulevard site as the group has sufficient in-depth expertise, financial capabilities, track record of other completed projects in Singapore and is confident that it will be able to proceed with and complete the proposed development of the site,” IOI Prop noted.

The termination is not expected to have any material impact on the company’s earnings per share and net asset per share.

Wealthy Link had successfully tendered for the Central Boulevard site on Nov 11, 2016, for a tender sum of S$2.57 billion (RM7.6 billion) from Singapore’s Urban Development Authority (URA).

Provisional permission from the URA was obtained in February 2018, to commence development works on the land.

The tender for the piling works has been awarded and construction has already commenced, the company said.

Meanwhile, IJM Corp Bhd’s wholly owned subsidiary IJM Construction Sdn Bhd has been awarded a RM1.12 billion contract from Prasarana Malaysia Bhd for the underground package of the Light Rail Transit Line 3 (LRT3) from Bandar Utama to Johan Setia.

In an exchange filing yesterday, the construction and engineering group said the project involves the design, construction and completion works of the underground tunnel, stations, ancillary buildings and other associated works. The project has a completion period of 31 months.