Chin Hin scraps RM1.15b Taman Connaught deal after ‘unsatisfactory due diligence’

PETALING JAYA (May 1): Chin Hin Group Property Bhd (CHGP) has terminated its RM1.15 billion gross development value (GDV) residential project in Taman Connaught, Cheras, after conditions precedent relating to the requisite development approval were not fulfilled within the stipulated approval period.

The project, to be undertaken by wholly-owned unit Avion Connaught Sdn Bhd (ACSB) under a Development Agreement (DA) signed in October 2025 with landowner Grand Uptown Sdn Bhd (GUSB), had earlier been estimated to generate about RM210 million in pre-tax profit based on a projected gross development cost of RM940 million, according to CHGP’s October 2025 announcement on the Taman Connaught DA and related company statements.

With the revocation, this previously projected RM210 million in pre-tax profit from the Taman Connaught project will no longer accrue to CHGP.

In its latest filing, CHGP said ACSB and GUSB have entered into a Deed of Revocation dated April 30 to revoke and rescind the DA dated Oct 16, 2025.

The DA involved the development of a 99-year leasehold parcel held under PN 52396, Lot 17692, Mukim Petaling, Daerah Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, measuring about 20,330 sq m (approximately five acres) in Taman Connaught.

CHGP said the termination was triggered by the non-fulfilment of a condition precedent, namely the securing of the relevant development approval for the project within the DA’s stipulated approval period.

The filing cited “unsatisfactory due diligence” in relation to the development approval as the reason the condition precedent was not met, without elaborating on specific technical or financial factors.

Read also:
Chin Hin Property signs deal to develop project worth over RM1.1 bil in Taman Connaught

Under the Deed of Revocation, the DA is rendered null and void with effect from April 30, 2026.

Both parties have agreed to mutually release and discharge each other from all obligations, covenants, liabilities and claims arising from the DA and its termination, and no compensation is payable by either party.

CHGP noted that the RM103 million consideration/entitlement payable to GUSB under the original DA has not been fully paid. Amounts paid to date, including initial deposits, are to be dealt with in accordance with the settlement and refund provisions set out in the Deed of Revocation.

The group said the revocation is classified as a non-related party transaction under Chapter 10 of Bursa Malaysia’s Listing Requirements.

Separately, earlier filings and company statements show that CHGP’s ongoing development pipeline includes a serviced apartment project in Segambut, Kuala Lumpur, with an estimated GDV of about RM239.1 million, following its acquisition of a parcel there for high-rise development.

The group is also undertaking a mixed-use high-rise joint development in Johor Bahru with Atlan Holdings Bhd, with an estimated GDV of around RM478 million under a joint development arrangement.

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