GDB enters Sarawak property market with RM32.72m land purchase

KUALA LUMPUR (Feb 16): GDB Holdings Bhd (KL:GDB) is acquiring three parcels of leasehold land in Kuching, Sarawak for RM32.72 million, marking its expansion into property development there.

Its wholly-owned GDB Development Sdn Bhd has signed three separate sale and purchase agreements with Mighty Metaverse Sdn Bhd, Borneo 1 Stop Business Services Sdn Bhd and Sport Pavillion Sendirian Bhd.

Mighty Metaverse's owner is Leong Eek Tuo, while Borneo 1 is owned by Chai Chan Tong. Chai is also a substantial shareholder in Bina Puri Holdings Bhd (KL:BPURI), holding a 16.89% stake.

Leong also owns a 30% stake in Sport Pavillion, with the remainder split between Chai Chan Wee (40%) and Chai Koh Lee (30%)—Chan Tong’s brothers.

The parcels comprise two plots totalling 1.17 hectares in the Kuching Central district, and 1.021 hectares in the Muara Tebas district. All three parcels are leasehold lands, with 60 years remaining on their lease tenures.

GDB said the acquisition will be funded through a mix of internal funds and bank borrowings.

The group is planning to build a phased mixed-use development on the plots, comprising serviced apartments, small office/home office units, retail components and anchor tenants, supported by facilities and car parks.

The group expects the proposed development to expand its land bank and strengthen its project pipeline, providing earnings visibility and supporting long-term growth. The deal is not expected to materially affect FY2026 earnings or share capital, though proforma gearing will rise to 10.06% from zero.

The acquisitions, which do not require shareholder approval, are slated for completion within nine months.

Shares in GDB closed up one sen or 2.6% to 39.5 sen on Friday, valuing the company at RM407.34 million. The stock has gained 11.3% over the past year.

Unlock Malaysia’s shifting industrial map. Track where new housing is emerging as talents converge around I4.0 industrial parks across Peninsular Malaysia. Download the Industrial Special Report now.