FAJARBARU Builder Group Bhd said it withdrew from the Residensi Cemara affordable housing development in Putrajaya, which had an estimated gross development value of RM192 million, citing the project as “not sustainable” after a change in requirements by Perbadanan Putrajaya.

The construction and property development company explained that the decision to pull out as the project’s developer was prompted by these revised requirements.

“After careful consideration, the board of directors has found that the development is not sustainable and has decided to pursue a much more viable opportunity,” it said in a Bursa Malaysia filing today.

The withdrawal was made through its wholly-owned subsidiary, Fajarbaru Land (M) Sdn Bhd.

On November 8, Fajarbaru announced that Perbadanan Putrajaya had accepted the withdrawal of Fajarbaru Land as the developer, though no specific reasons were provided at the time.

The group also disclosed that Fajarbaru Land had incurred approximately RM1.2 million in costs related to the development to date.

“There is no legal implication arising from the withdrawal by Fajarbaru Land,” it added.

Earlier this year, Fajarbaru Land had accepted an offer from Perbadanan Putrajaya to be the developer for Residensi Cemara, which includes 480 units of Residensi Madani and 320 units of Residensi Wilayah, a government-sponsored housing initiative.

The development was planned to be completed within three years.

Fajarbaru’s shares closed unchanged at 38 sen today, with a market capitalisation of RM279.35 million. — TMR