Nexgram responds to Bursa's queries on Angkasa Icon City project

PETALING JAYA: Nexgram Holdings Bhd, which took seven market days to respond to Bursa Securities’ queries on its latest agreement, has disclosed that an amended offtake agreement with MyAngkasa Bina Sdn Bhd for the Angkasa Icon City project is to include China Asian Capital Holding Bhd into it following the joint development agreement (JDA) signed on May 19, 2017.

Nexgram was to have responded to the queries issued on May 26, 2017 in one market day.

The queries involve the almost three-year wait for the RM1.15 billion project – the agreement for which was signed in December 2014.
Announcements on the project, which is to see a subsidiary of cooperative Angkasa take over an entire development in Cyberjaya upon completion, have been sporadic and lack clarity.

Despite the signing of the agreement in December 2014, little update has been given to Bursa Securities, apart from statements on extensions of time for the securing of development order approval under an offtake agreement between Nexgram’s subsidiary Nexgram Land Sdn Bhd and MyAngkasa Bina Sdn Bhd.

On May 19, however, the group announced that Nexgram Land had signed a JDA with China Asian without much details, leading Bursa Securities to enquire about a host of issues, including the approvals the JDA will have to secure, details of the amended offtake agreement and the main contractor for the project.

Nexgram disclosed that the gross development value and cost of the project remains the same and that the JDA will not involve the incorporation of a joint venture company but rather an unincorporated joint venture. Its responsibilities include obtaining approval for the revised development order.

While the existing approved development order is based on a block of corporate offices, a block of SOHO units and several commercial shoplots, the proposed revision is to include a block of SOVO units, a block of serviced suites, a hotel and commercial shoplots.

Nexgram said net profit arising from the sale of each completed phase of the project would be shared between the parties in equal proportions. “All costs as approved under the development budget by the management committee of the JD entity shall form part of the project cost and shall be paid out of the designated bank account opened jointly by the parties.”

The proposed commencement date of the project is six months from the date of approval of the building plans, while the proposed completion date is 60 months, with a further irrevocable extension of 12 months.

“The parties are finalising the terms and conditions of the amended offtake agreement and it will be executed once all terms of the agreement have been finalised by the parties.”

Nexgram said the parties intend to enter into a turnkey contract with SEF Construction Pte Ltd and Maju Bina Ventures Sdn Bhd (MBV) to appoint SEF and MBV as the main constractor for the project.

SEF is a Singapore-based construction company, certified with A2 General Builder under the Singapore Building and Construction Authority with capabilities in handling a wide range of projects including high-end hotels, luxury residences, public housing, commercial buildings mixed developments, retail malls and recreation facilities.

MBV is a property and building construction company based in Malaysia focusing on civil and structural works, interior fit out and property development.

Nexgram’s shares closed half a sen higher to 50 sen yesterday.