KUCHING: Cahya Mata Sarawak Bhd (CMS) group has terminated a joint venture agreement to build an international hotel and service apartments in Kuching Isthmus.
CMS Land Sdn Bhd, which is 51 per cent-owned by Cahya Mata Development Sdn Bhd, which in turn is a wholly-owned subsidary of CMS, had on December 1, 2010 executed the joint venture agreement (JVA) with Premier Cottage Sdn Bhd (PCSB), Boulevard Jaya Corporation Sdn Bhd (BJSB), Hikmat Majusama Sdn Bhd (HMSB) and Isthmus Developments Sdn Bhd, to build, own and manage a four-star hotel and service apartments at Kuching Isthmus. The estimated cost of the project was RM380 million.
As part of the JVA, CMS Land would inject two parcels of land measuring 10.5 acres to Isthmus Developments.
The proposed hotel will have 381 rooms and 96 units of service apartments. The project was to have commenced in first quarter of 2011 for completion by end-2013.
CMS had then said that the project would act as a catalyst to accelerate further development in the Kuching Isthmus into a vibrant commercial hub and satellite city, and support Borneo Convention Centre Kuching (BCCK) to attract more users.
“CMS Land and all the parties, namely PCSB, BJSB and HMSB, had mutually agreed to terminate the JVA as the purpose of the joint venture to build, own and manage the hotel (project) on Lot 2839 and Lot 2852,containing an aggregate of 10.53 acres, is no longer desired by the shareholders.
“CMS Land will reimburse its shareholders the amount of RM3,229,358.94 for the land improvement costs and authority costs (reimbursement cost) for Lot 2839 and 2852, which will remain under the ownership of CMS Land. The reimbursement cost was verified and certified by an independent consultant.
“Hence the JVA shall cease to be valid and effective from 31 December 2024,” CMS said in a filing with Bursa Malaysia.
According to CMS, the termination of the JVA is not expected to have any material effect of the company’s financial position in respect of the net assets and gearing ratio as well as earnings level for financial year ended December 31, 2024.
Meanwhile, CMS has appointed former Sarawak Commissioner of Police, Datuk CP (R) Mohd Azman Ahmad Sapri, 60, and Datuk Mat Hassan Esa, 71, as independent directors, effective Jan 1, 2025.
Mohd Azman, who obtained his Bachelor of Laws from International Islamic University Malaysia, and Master of Laws from National University of Malaysia (UKM), had served the Royal Malaysia Police for more than 38 years.
In an unrelated development, Asteel Group Bhd said its independent director Fong Yoo Kaw @ Fong Yee Kow, 72, has retired, effective Jan 1, 2025.
Asteel has redesignated Aw Chiew Lan, 53, as its chief financial officer. Aw owns 813,800 ordinary shares (0.168%) in the company.
