KUALA LUMPUR, Jan 18 – Some of Malaysia’s largest property developers have decided to cancel a joint effort to develop a multi-billion affordable housing project in Jakarta, Indonesia.
On Aug 2, 2016, Sime Darby, I&P Group, S P Setia (Indonesia) and PT Hanson International Tbk signed an MoU to jointly develop 500 hectares of land in Maja, Tangerang, which is about 80km from Jakarta.
In a filing to Bursa Malaysia today, Sime Darby said all three companies have decided not to pursue the joint venture with PT Hanson International Tbk.
The companies are also “exercising the right to terminate the memorandum of understanding (MoU) in accordance with the terms, with immediate effect,” Sime Darby said, without stating any specific reason for the termination.
The project had a gross development value of RM3.5 billion.
PT Hanson is one of Indonesia’s largest property developer by landbank, owning more than 3,500 hectares in Jakarta.