SINGAPORE - Pine Capital Group has terminated an agreement to develop a township on land there, due to the "political situation and other complex factors in Sri Lanka which has undermined investor confidence", the investment firm said in a bourse filing on Thursday (Nov 28).

The memorandum of understanding (MOU) with the Provincial Council of the Eastern Province of Sri Lanka was for the investment and development of a parcel of land, with the council accepting the notice of termination on Nov 27.

In December last year, Pine Capital said the total investment in the project was conservatively expected to be at least US$3 billion (S$4.1 billion).

The company had said then that it envisions an integrated hospitality and lifestyle township comprising luxury resorts, hotels, serviced apartments, an international fashion design institute, and a convention centre to cater for fashion and lifestyle events.

Subsequently in July this year, Pine Capital entered into an agreement to extend the MOU for a year from June 19, 2019, till June 18, 2020.

Earlier this week, the company, which recently ended its legal tussle with former chairman Tan Choon Wee, announced that its latest executive chairman, Tomi-Jae Wanlun Tjio, had resigned for "personal matters".

The group called for an extraordinary general meeting in April to propose the removal of Mr Tan, who was then also CEO and director of Pine Capital's subsidiary Advance Capital Partners Asset Management (ACPAM), from the board of ACPAM. Mr Tan sued the group, and Pine Capital subsequently commenced its own legal proceedings against him and other former directors and officers of ACPAM. In October, Pine Capital and ACPAM reached a settlement with Mr Tan after mediation.

Separately, earlier this month, Pine Capital posted a net loss of $1.8 million for its second quarter ended Sept 30, widening from a loss of $358,000 a year ago.

Trading in Catalist-listed Pine Capital shares has been suspended since March.