PETALING JAYA (July 8, 2026): TWL Holdings Bhd has provided further clarification on the mutual termination of three joint venture agreements (JVAs) involving its wholly-owned subsidiary, TWL Builders Sdn Bhd, after responding to queries from Bursa Malaysia.
The terminated joint ventures involve GreatProp Development Sdn Bhd, ElitProp Sdn Bhd and Pentas Irama Sdn Bhd, covering three residential development parcels located in Seksyen 35, Shah Alam, collectively known as the Alam Impian Project.
Years of project revisions before termination
According to TWL, the projects experienced repeated delays over several years due to changing market conditions and evolving development strategies.
The original development plan, approved in 2015, consisted of 44 semi-detached houses.
However, after reviewing market demand, the company concluded that the product was no longer commercially attractive because of its relatively high selling prices and weaker demand.
The development concept was subsequently revised into a mixed residential scheme comprising medium-rise condominiums and three-storey semi-detached houses, which was expected to generate a higher gross development value (GDV) and stronger profitability.
Despite the revised proposal, no Development Order application was submitted.
The company later redesigned the projects into linked terrace housing developments and obtained the necessary approvals in 2020.
However, construction did not proceed following the COVID-19 pandemic.
External challenges delayed implementation
TWL attributed the delays to a combination of external and commercial factors, including:
COVID-19 movement restrictions.
Construction industry disruptions.
Supply chain shortages.
Labour shortages.
Financing constraints.
Weak property market conditions.
Changes in development concepts to better match market demand.
The company said the projects were deferred while management monitored market conditions to ensure future developments would remain commercially sustainable.
Three Alam Impian projects
Each of the three projects involved approximately 4.2 acres of freehold agricultural land in Seksyen 35, Shah Alam.
Lot 1887
Estimated GDV: RM67 million
Estimated gross development cost (GDC): RM57 million
Estimated profit: RM10 million
Development progress: Approximately 10%
Development expenditure incurred: RM4.86 million (fully reimbursed)
Lot 1888
Estimated GDV: RM67 million
Estimated GDC: RM57 million
Estimated profit: RM10 million
Development progress: Approximately 10%
Development expenditure incurred: RM3.93 million (fully reimbursed)
Lot 1889
Estimated GDV: RM67 million
Estimated GDC: RM57 million
Estimated profit: RM10 million
Development progress: Approximately 18%
Development expenditure incurred: RM11.19 million (fully reimbursed)
Across the three sites, preliminary works had already been carried out, including site clearing, earthworks, reinforced concrete walls, sample house construction and infrastructure works.
No buyers affected
TWL confirmed that none of the three residential projects had been officially launched to the public.
As a result:
No residential units were sold.
No sales revenue was recognised.
No purchasers were affected.
No liquidated damages or buyer compensation are payable following the termination.
Full refund of consideration and development costs
Under each joint venture agreement, TWL Builders had paid RM3 million to secure exclusive development and construction rights.
Following the mutual termination:
All three JV partners refunded the RM3 million consideration in full.
Development expenses incurred by TWL Builders were also fully reimbursed.
The reimbursed funds will be utilised to partially settle the purchase consideration under a separate share sale agreement signed on June 18, 2026 between TWL Builders and Lam Boon Ling.
No related-party issues
TWL also clarified that none of the directors, shareholders or connected persons of the three joint venture partners were related parties to the TWL Group.
Although there were changes in directorships over the years, there were no changes in shareholdings that created related-party relationships under Bursa Malaysia's listing requirements.
Key Takeaways
TWL Holdings has mutually terminated three residential joint venture projects in Alam Impian after years of delays caused by changing market conditions and external challenges.
The projects underwent several design revisions, shifting from semi-detached homes to mixed residential developments before finally being redesigned as linked terrace houses.
Despite obtaining approvals, the projects were ultimately delayed by the COVID-19 pandemic, labour shortages, supply chain disruptions, financing constraints and softer property market conditions.
None of the projects were launched to the public, meaning no homebuyers were affected and no compensation liabilities arose.
TWL successfully recovered both the RM3 million consideration paid under each joint venture and all development expenses incurred, minimising financial losses from the project cancellations.
The recovered funds will be redirected towards another corporate acquisition, demonstrating prudent capital recycling.
The case illustrates the importance of development flexibility, market timing and risk management, particularly for long-term residential projects affected by changing economic conditions and industry disruptions.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 8 Jul 26
Malaysia