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- The Sabah-based property developer said the LOI, which was disclosed in its Bursa Malaysia filing on Tuesday (Oct 14), serves only as a "basis for further discussion and negotiation, subject to approvals and the signing of a definitive agreement".
KUALA LUMPUR (Oct 16): KTI Landmark Bhd (KL:KTI) has clarified that its recent announcement regarding the proposed redevelopment of Wisma Budaya in Kota Kinabalu does not constitute a contract award, but merely a non-binding Letter of Intent (LOI) from the Ministry of Tourism, Culture and Environment Sabah (KePKAS).
The Sabah-based property developer said the LOI, which was disclosed in its Bursa Malaysia filing on Tuesday (Oct 14), serves only as a "basis for further discussion and negotiation, subject to approvals and the signing of a definitive agreement".
“The LOI is not a binding award of contract,” KTI said in a statement on Thursday. “At this stage, no contract has been awarded to KTI Landmark Bhd for the Wisma Budaya redevelopment. Any statement to the contrary is a misinterpretation of our Bursa announcement.”
On Tuesday, KTI said its wholly-owned subsidiary KTI Sdn Bhd had accepted the LOI to develop a new headquarters for the state ministry—to be named Wisma KEPKAS—involving the demolition and reconstruction of the existing Wisma Budaya on Jalan Wisma Budaya.
The total estimated development cost stands at RM70 million.
The project, if confirmed, would add to KTI’s growing portfolio of state-linked developments, which include the proposed RM107 million cultural complex in Kinarut and a RM130.6 million contract from the Construction Industry Development Board to build the Malaysian Building Academy campus in Papar.
Shares of KTI Landmark, which debuted on the ACE Market in June 2024, closed 0.5 sen or 1.22% lower at 40.5 sen on Thursday, valuing the group at RM324 million.
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