Fajarbaru reveals reason it pulled out of RM192m affordable housing project in Putrajaya

• The construction and property development outfit revealed that its withdrawal as the developer of the project was due to a change in the requirements made by Perbadanan Putrajaya.

KUALA LUMPUR (Nov 12): The reason Fajarbaru Builder Group Bhd (KL:FAJAR) pulled out from participating in the affordable housing development in Putrajaya dubbed Residensi Cemara, which is estimated to have a gross development value of RM192 million, was that it had deemed the project "not sustainable" following a change in requirements.

The construction and property development outfit revealed that its withdrawal as the developer of the project was due to a change in the requirements made by Perbadanan Putrajaya.

"After careful consideration, the board of directors has found that the development is not sustainable and has decided to pursue a much more viable opportunity," it said in a filing with Bursa Malaysia on Tuesday. Fajarbaru was participating in the development through its wholly owned subsidiary Fajarbaru Land (M) Sdn Bhd.

On Nov 8, Fajarbaru said Perbadanan Putrajaya had accepted Fajarbaru Land's withdrawal as the developer for the integrated development. However, no reason was given then.

Fajarbaru also revealed that the estimated cost incurred by Fajarbaru Land to-date on works that had been done on or for the development stood at RM1.2 million.

"There is no legal implication arising from the withdrawal by Fajarbaru Land," it added.

Fajarbaru Land had on Jan 24 this year accepted a letter of offer from Perbadanan Putrajaya in respect of the appointment of Fajarbaru Land as the developer for Residensi Cemara, comprising 480 units of Residensi Madani and 320 units of Residensi Wilayah, with a development period of three years. These units are part of the government-sponsored housing programme.

Fajarbaru shares closed unchanged at 38 sen on Tuesday, giving it a market capitalisation of RM279.35 million. The stock has risen 31% so far this year.

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