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- In a filing with Bursa Malaysia on Tuesday, EP Manufacturing said Kensington has terminated all agreements with BPPSB and will take the necessary steps to reclaim possession of the land involved in the project.
KUALA LUMPUR (Dec 23): Automotive solutions provider EP Manufacturing Bhd (KL:EPMB) has scrapped plans to jointly develop a commercial project in Kota Kinabalu, Sabah, following the winding up of the project’s turnkey contractor Bina Puri Properties Sdn Bhd (BPPSB), a wholly owned subsidiary of Bina Puri Holdings Bhd (KL:BPURI).
The project, which was planned as a 30-storey commercial development comprising two levels of commercial units and 22 levels of serviced suites along Jalan Tuaran, Kota Kinabalu, was to be undertaken by EP Manufacturing’s wholly owned property development subsidiary, Kensington Development Sdn Bhd.
In a filing with Bursa Malaysia on Tuesday, EP Manufacturing said Kensington has terminated all agreements with BPPSB and will take the necessary steps to reclaim possession of the land involved in the project.
"Kensington will reserve all its rights in this method including the right to claims for loss or damages suffered as a result of BPPSB breach and/of repudiation of the agreements," the company said. BPPSB has since been wound up and placed under liquidation.
Kensington, acting as landowner and developer, had entered into a joint venture development agreement with BPPSB on June 14, 2013. This was followed by a supplemental agreement in September 2013 and a tri-partite agreement in December the same year for Phase 1 of the development, known as 8 Avenue.
Shares in EP Manufacturing closed 3.5 sen or 6.73% higher at 55.5 sen on Tuesday, giving the group a market capitalisation of RM157.4 million. However, the stock remains down 4.31% year to date.
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