Yes, then a no, and now yes again

THIS is the predicament construction company TRC Synergy Bhd has landed itself in with regard to the 1Malaysia Civil Servant Housing Development (PPA1M) project that it first received from Putrajaya Corp (PJC) in December 2015.

The project was taken away on Feb 29 this year. All of a sudden, it has gotten the project back again.

On Dec 4, 2015, TRC’S wholly owned subsidiary TRC Land Sdn Bhd was first appointed the developer of the PPA1M project from PJC for a gross development cost of Rm292.74mil.

The project would consist of 500 PPA1M residential units, 316 public residential units and 20 commercial units in Precint 18, Putrajaya.

There was no update on the project, and then almost four years later on Feb 25, 2019, TRC told Bursa Malaysia that it had received a three-month notice of termination from PJC concerning the project.

The termination of the development agreement was made by PJC in accordance with Clause 26 – termination on national interest.

“The company believes that the termination is consistent with the government’s new initiatives to consolidate the development of affordable homes under the Housing and Local Government Ministry,” TRC told Bursa back then.

Even so, TRC said that the termination was not expected to have any material impact on the earnings, net assets and gearing of the company.

Its share price barely budged with this news. The saga was not over though.

Earlier this week on Sept 25, TRC told Bursa that the project is back on.

It has received a letter of withdrawal of the termination from PJC.

“Therefore, PJC and TRC Land in principle have agreed to resume the project following the development agreement executed earlier by both parties.

“The company will make further announcements should there be any material development on this matter,” said TRC.

As no material progress has actually been reported on this project, it will take some convincing that it will one day soon take off.