KUALA LUMPUR: Naim Indah Corporation Bhd and Lagenda Erajuta Sdn Bhd have mutually ended the proposed RM450mil Gateway Klang mixed development project.

Naim Indah said on Tuesday both parties had mutually agreed to terminate the letter of award for the project management consultancy in February 2015 due to the delay in obtaining approval for the land transfer and changing in land usage status matters from the local authorities by Lagenda.

The project would have consisted of duplex shop office, hotel tower, anchor lot, cineplex and related external works.

Recall that Naim Indah had stated the proposed award would enable it to take part in potentially visible development projects and potential foray in the property market in Klang, considering that Lagenda is the developer for the Gateway Klang project.

The value of the letter of award was 4% of the gross development cost of the Gateway Klang project.

Based on the preliminary estimated gross development cost of RM450mil, the value of the letter of the award was then estimated to be RM18mil.