TWL drops three Klang property projects after extended completion windows expire

PETALING JAYA (June 30): TWL Holdings Bhd (TWL) yesterday brought three long-running joint venture agreements (JVAs) in Klang to a formal close, mutually terminating its residential and commercial development tie-ups with Greatprop Development Sdn Bhd, Elitprop Sdn Bhd and Pentas Irama Sdn Bhd.

In three separate Bursa Malaysia filings dated today, TWL said its wholly owned subsidiary TWL Builders Sdn Bhd (TBSB, formerly Tiger Synergy Development Sdn Bhd) and each of the three landowners had agreed to terminate their JVAs mutually in accordance with the provisions of the agreements.

The JVAs, signed between 2013 and 2014, were intended to undertake residential and/or commercial development projects on three parcels in the Mukim of Klang, Selangor: GM 1927, Lot 1888 (Greatprop Development), GM 231, Lot 1889 (Elitprop Sdn Bhd) and GM 1388, Lot 1887 (Pentas Irama Sdn Bhd). The mutual terminations are effective yesterday, aligning the contractual end-point for all three Klang projects.

Extended dates expire, JVAs no longer workable

TWL said the joint ventures were originally formed to allow the group to participate in and benefit from business ventures that were expected to contribute positively to future profitability, cash flow and income stability.

Under the JVAs, each project was expected to be completed within two years from the date of approval of the layout plan by the relevant authorities, or within an extended completion period mutually agreed by the parties.

TWL said the extended completion dates had expired, and the terms of the JVAs could therefore no longer be fulfilled pursuant to the agreements. The parties have decided that it is in the best interest of both parties to mutually terminate the JVAs.

Refunds within 12 months from JVA dates

For each of the three JVAs, TWL disclosed that, upon termination, all consideration sums paid by TBSB to the respective joint venture partners — Greatprop Development, Elitprop and Pentas Irama — shall be refunded within twelve (12) months from the date of the respective JVA.

The refund obligation is framed as part of the contractual termination mechanics, and the filings do not mention any additional penalties, break fees or deposit forfeitures.

TWL said the mutual terminations will not have any material impact on its paid-up share capital, substantial shareholders’ shareholdings, earnings per share, consolidated net assets per share or gearing.

Board’s view and approvals

The board of directors, having considered all aspects of the mutual terminations, said it is of the opinion that terminating the JVAs is in the best interest of TWL. The group added that the mutual terminations do not require the approval of TWL’s shareholders or any regulatory authority.

Copies of the mutual termination agreements are available for inspection at the company’s registered office at Wisma TWL, Jalan Melaka, Kuala Lumpur, during normal working hours from Monday to Friday (excluding public holidays) for a period of three months from the date of the announcements.

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