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WCT secures development rights over Sabah land to undertake mixed development

KUALA LUMPUR (Oct 14): WCT Holdings Bhd's unit has secured the sole development rights over 411 acres of land in total at Lok Kawi in Sabah's Putatan district.

In a bourse filing yesterday, WCT said its indirect 80%-owned subsidiary, WCT Perkasa Sdn Bhd, has entered into a deal with Yayasan Sabah for the option to acquire the development rights over the land, comprising several parcels, in phases to undertake a mixed development project.

The acquisition, the group said, would enable it to enhance its land bank with strategic development land in Sabah without incurring a substantial upfront land cost as the options to acquire the development rights over the land are to be exercised over a 15-year period.

"On the assumption that the developer exercises the options over all the parcels, the total consideration shall be 12% of the actual GDV (gross development value) of the project, subject to the minimum sum of RM840 million (project land minimum guaranteed sum), which is RM46.87 per square foot of the gross land area of the project land.

"The project land minimum guaranteed sum has been computed based on the preliminary projected GDV for the project of approximately RM7 billion," said WCT.

The group said the acquisition is expected to provide the group with stronger presence in the property market in East Malaysia.

WCT has previously completed a property development project in Kota Kinabalu, namely the d'Banyan Residency @ Sutera. The group also has a piece of land bank measuring 22 acres located in Inanam, Kota Kinabalu intended for future development.

Currently, the group's property projects are mainly located in the Klang Valley and Johor.

WCT's share price closed four sen or 6.15% higher at 69 sen yesterday, giving the group a market capitalisation of RM979 million.

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