OCR did not mention the reason for the cancellation of the agreement in its filing with Bursa Malaysia today.
The JV between OCR’s wholly-owned subsidiary Fajar Simfoni Sdn Bhd and D’nonce’s unit D’nonce Properties Sdn Bhd was signed in May last year.
The two parties agreed to develop a 19-storey block housing 281 units of flats and a seven-storey car park podium on 6,774 sq m of land belonging to Tan Than Kau and Tan Tiang Yang.
The project was worth RM85 million in gross development value.
In its filing, OCR said the group reserves the rights to claim against D’nonce Properties under the agreement and the law.
“The termination will not have any material effect on the earnings or net assets of OCR for the financial year ending Dec 31, 2020,” the group added.
OCR’s share price rose 1.5 sen or 6.38% to close at 25 sen today, giving a market capitalisation of RM83.2 million.