IOI Properties share price down on aborted JV

PETALING JAYA: IOI Properties Group Bhd’s share price fell 1.66% this morning following news that it has scrapped its joint venture (JV) with Hongkong Land International Holdings Ltd (HKLI) for a project at Central Boulevard in Singapore, despite the commencement of construction work.
At 10.46am, IOI Properties’ share price stood at RM1.78, with 1.08 million shares changing hands.
IOI Properties said the memorandum of agreement (MOA) with HKLI was terminated yesterday due to the non-fulfillment of certain conditions in the JV.
It is not known which condition was not met. The MOA was conditional on the fulfillment of conditions by March 12 including obtaining additional conveyance duties remission approval; Urban Redevelopment Authority approval; lenders’ approval; additional buyer stamp duty remission approval; and Bank Negara Malaysia approval.
However, the group has the confidence to proceed with and complete the proposed development.