KUALA LUMPUR: UDA Holdings Bhd is terminating the proposed sale of a piece of land in Jalan Sultan Ismail in the heart of Kuala Lumpur for RM215.50 million to Nadayu PROPERTIES [] Bhd.

Nadayu, formerly known as MUTIARA GOODYEAR DEVELOPMENT [] Bhd, said on Wednesday, July 20 that its solicitors had received a letter from UDA about the unsuccessful land deal.

UDA said it was 'unable to obtain the approval of UDA's shareholder' for the disposal of the 3.56 acres and intends to terminate the sale and purchase agreement with Nadayu.

'UDA has also proposed that all the obligations and liabilities of the parties under the SPA shall cease to have effect and none of the parties shall have any claim against the other for cost, damage, compensation or otherwise.

'Notwithstanding the above, the company intends to seek clarification from UDA and its shareholders on their decision and will make an appeal on the matter to UDA in due course,' it said.

On, July 12 Nadayu had entered into a sales and purchase agreement with UDA to formalise the terms and conditions of the proposed acquisition.

Based on UDA's financial year ended Dec 31, 2010, the audited net book value of the land was RM31.71 million.

The plan was to build a 30-storey service apartment building, an eight storey podium car park and a three-storey retail shopping complex.