Suria Capital and Gabungan AQRS Have Abandoned Plans to Develop the One Jesselton Waterfront Project in Collaboration

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Suria Capital Holdings Bhd and Gabungan AQRS Bhd have abandoned plans to develop a mixed development called One Jesselton Waterfront on 6.28 acres of land in Kota Kinabalu, Sabah, six years after signing the agreement.

Suria Capital said in a bourse filing on Thursday that because the current market environment remains uncertain as a result of the Covid-19 pandemic, which has impacted the State’s construction and tourism sectors, both parties have concluded that the project is no longer viable to pursue within the stipulated timeframe and is no longer achievable due to the prevailing uncertainty.

Gabungan AQRS stated in a separate filing that the two parties have mutually agreed to terminate a joint venture (JV) agreement entered into in March 2015 to develop Suria Capital’s 6.28-acre land. Gabungan AQRS will be fully reimbursed for related advances totaling RM7.94 million made to Suria Capital.

Nonetheless, Gabungan AQRS stated that both parties may reconsider cooperating to maximise the commercial value of One Jesselton Waterfront in the future or once the global tourism sector returns to normalcy.

As a result, Gabungan AQRS has also terminated a Memorandum of Understanding (MoU) with Singapore-based investment firm Tera Capital Pte Ltd, as there has been no material development since the MoU was signed in July 2017. According to the terms of the MoU with Tera Capital, Gabungan AQRS was to develop the hotel and serviced suites component of the development in accordance with Tera Capital’s design concept. The latter would bring in a partner-contractor for the project, forming a joint venture with Gabungan AQRS.

Gabungan AQRS stated that neither termination will have a material impact on the group’s issued and paid-up share capital, substantial shareholders’ holdings, earnings, net assets, or gearing for the fiscal year ending December 31, 2021.

Gabungan AQRS stated at the time that the proposed JV was consistent with its long-term strategic plan to retain recurring income assets such as the One Jesselton Waterfront development.

Apart from the hotel and serviced suites, the 6.28-acre development also features residential apartments, a retail shopping mall, an office tower, and ancillary services and amenities.

Suria Capital’s shares fell one sen or 0.87 percent to RM1.14, valuing the company at RM394.24 million. Gabungan AQRS shares, meanwhile, closed 2.5 sen or 4.55 percent higher at 58 sen, valuing the company at RM312.76 million.

Published by Zack Baharum

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