OCR Group Bhd’s units are being sued by their contractor over alleged payment default of RM30.93 million in relation to projects in Kuantan and Petaling Jaya. Kencana Amanjaya Sdn Bhd is suing OCR’s 90%-owned subsidiary OCR Properties (Kuantan) Sdn Bhd relating to a residential project involving 979 terrace houses and 130 units of semi-detached houses in Kuantan.
OCR said that Kencana was appointed as contractor in January 2018 for this project via a letter of award, which was terminated in April 2021. Kencana’s claims include RM16.38 million of outstanding debt and general damages arising from breach of contract.
KUALA LUMPUR (April 20): Property developer OCR Group Bhd has maintained that there is no operational impact on the group arising from the lawsuit filed by a former contractor over alleged payment default of RM30.93 million in relation to projects in Kuantan and Petaling Jaya.
The claims by the ex-contractor, Kencana Amanjaya Sdn Bhd, are baseless and frivolous, said OCR in a statement on Thursday (April 20), adding that it has instructed its solicitors to contest the matter to fully defend its interest.
On Wednesday, OCR said Kencana is claiming alleged outstanding debt of RM16.38 million from its 90%-owned subsidiary, OCR Properties (Kuantan) Sdn Bhd, relating to the PRIYA Kuantan project.
The group said Kencana was appointed as the contractor for this project in January 2018 but was terminated in April 2021.
OCR added that Kencana is similarly claiming alleged outstanding debt of RM14.55 million from the group's wholly-owned subsidiary, OCR Construction Sdn Bhd, relating to the YOLO Signature Suites project, for which Kencana was appointed as contractor in May 2019 but terminated in April 2021.
In its statement on Thursday, OCR said PRIYA Kuantan is the largest affordable housing scheme in Kuantan, comprising 1,124 units of single-storey terrace houses and semi-detached homes within the RM125,000 to RM254,000 price range.
The project is a 50:50 joint venture between OCR Properties and Yayasan Pahang to develop the 100-acre land in Kuantan.
The RM166 million gross development value (GDV) project has been fully sold since its launch, with OCR set to deliver vacant possession of the first phase of 394 units in the second quarter of 2023. The balance 730 units are slated for vacant possession in the third quarter of 2023.
On the YOLO Signature Suites in Bandar Sunway, Petaling Jaya, OCR said it is cmpleting construction in the second quarter of 2023, having marked the topping up in December 2022.
The group said the low density 40-storey high-rise features 395 exclusive units, and the contract value amounts to RM159.6 million.
“We are tracking the market-appropriate timing for new launches of residential properties in the mid-term in strategic locations across diversified segments, from affordable housing and exclusive sub-urban condominiums, to condominiums,” said OCR Group managing director Billy Ong Kah Hoe.
He added that the group was simultaneously diversifying its property segment coverage to include the commercial segment, initially through the integrated e-commerce logistics hub which will also build a platform for sustainable earnings for the group.
OCR shares closed unchanged at 8.5 sen, valuing the group at RM84.15 million.
May be not enuf tickets to goreng, ECRL reinstat. Another view is, pp 0.08, give to big k, easy goreng back to 0.30, 50,000,000 x 0.08=4,000,000, if 50,000,000 x 0.30 =15,000,000...ocr will not use own pocket money
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