Sentoria’s stalled Morib project to be taken over by Masteron

KUALA LUMPUR (Jan 30): Sentoria Group Bhd (KL:SNTORIA) announced on Thursday that developer Masteron Sdn Bhd will take over its troubled 204-acre development in Morib, Selangor, after the group admitted it was unable to complete the project.

In a bourse filing, Sentoria said its subsidiary Sentoria Harta Sdn Bhd has inked a takeover agreement with Hartanah Masteron Sinar Suria Sdn Bhd, a unit of Masteron, based on a check with the Companies Commission Malaysia.

The Morib project sits on land owned by Seriemas Development Sdn Bhd and dates back to a 2012 joint venture between Sentoria and Seriemas. While some portions of the massive development have begun, only one phase has been completed over the last decade.

Under the takeover agreement, Masteron will assume responsibility for the project's remaining liabilities, the revival of stalled phases—except for the Plot L (RSKu Morib Anggun) affordable housing segment, which Sentoria remains responsible for—as well as the development of remaining parts.

Masteron will fork out RM5.25 million to take over the project; of which RM5 million will be paid directly to the creditors—two entities that aided in funding certain parts of the project previously—and RM250,000 will be paid to Sentoria Harta as “earnest payment”, which is not refundable.

Sentoria's exit from the Morib project comes as it struggles with financial difficulties. The company triggered Practice Note 17 (PN17) status back in December 2024 after its shareholders’ equity fell to 33% of its issued and paid-up capital. For the financial year ended Sept 30, 2024 (FY2024), Sentoria reported a net loss of RM89.04 million on the back of just RM7.55 million in revenue.

Adding to its woes, Sentoria Harta was served a winding-up petition by Al Rajhi Banking & Investment Corporation (Malaysia) Bhd on Monday for unpaid debts totalling RM8.69 million.

Earlier this month, the group was granted a six-month extension by Bursa—up until June 3, 2026—to submit its regularisation plan to resolve its PN17 status.

Shares in Sentoria ended unchanged at 1.5 sen on Thursday, valuing it at RM9.34 million.

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