Ivory Properties aborts redevelopment project plan in Cheras

PETALING JAYA: Ivory Properties Group Bhd has terminated a memorandum of understanding (MoU) with Taman Segar Management Corporation and Upper Label Sdn Bhd for the redevelopment of apartments in Cheras.
In a filing with Bursa Malaysia today, the group said that the MoU had lapsed on July 11, 2018 and the parties have mutually agreed not to proceed with the MoU, which will be terminated immediately.
It said that the MoU is non-binding hence the termination does not have any financial impact on the group.
Under the MoU which was signed in July last year, the parties were to demolish three blocks of apartments with 300 units and build 800 units on the 4.45-acre site.
The redevelopment of the 35-year old apartments would have marked Ivory Properties' foray into the affordable housing segment in Kuala Lumpur.
Last year, the property developer said that the purpose of the MoU was to have an understanding with Taman Segar residents to proceed with an application to Kuala Lumpur City Hall (DBKL).
It said that the market value of the land was about RM400 to RM500 per sq ft and the new units would measure 800 sq ft each. The developer was to award 300 units to the residents as compensation while the remaining 500 units were to be sold at about RM300,000 per unit.
Ivory Properties' share price fell 1.72% or half sen to close at 28.5 sen with 110,000 shares traded.