Zecon, PR1MA terminate partnership for mixed development in Kuching

• The group had in 2014 disposed of the 54.16-acre land to PR1MA for RM46 million, before entering into a joint development agreement in 2015 and heads of agreement in 2016 to jointly develop the project.

KUALA LUMPUR (Jan 31): Zecon Bhd and PR1MA Corp Malaysia have mutually terminated a partnership to jointly develop a mixed development project in Kuching, Sarawak.

Following the termination, Zecon will be buying back the project from PR1MA for RM63.56 million, which includes the land cost, Zecon said in a stock exchange filing.

The group had in 2014 disposed of the 54.16-acre land to PR1MA for RM46 million, before entering into a joint development agreement in 2015 and heads of agreement in 2016 to jointly develop the project.

Both parties agreed that the reimbursement of work done on the project and balance of sale consideration owed by PR1MA to Zecon totalling RM9.93 million, be set-off against the RM63.56 million sum to buy back the project.

The remaining RM53.62 million will be satisfied by a RM2.68 million initial sum, and 18 monthly instalments of RM2.83 million each.

As at Sept 30, 2022, Zecon’s deposits with licenced banks, cash and bank balances stood at RM33.02 million, down from RM34.35 million as at end-2021.