SCIB’s Dimpoukon Residence co-development becomes unconditional

PETALING JAYA (Aug 14): Sarawak Consolidated Industries Bhd (SCIB) said its co-development agreement with Inland World Sdn Bhd (IWSB) for the Dimpoukon Residence high-rise residential development in Penampang, Sabah, became unconditional on Thursday (Aug 13) after all conditions precedent were fulfilled on the same date.

The agreement was entered into between SCIB’s wholly owned subsidiary SCIB Ecobuild Sdn Bhd (SCIBE) and IWSB.

In a separate Bursa Malaysia filing on Friday (Aug 14) providing additional information, SCIB said IWSB, which will remain the project’s registered developer, had commenced site-clearing works and was preparing to hand over the site to SCIBE. SCIBE is expected to commence construction works on or around Aug 17, while the project is expected to be completed by February 2029.

SCIB said IWSB had obtained the necessary approval from the Sabah Land and Surveys Department for the use of the project lands, as well as approvals for the development plan and other relevant plans from the local authorities. SCIBE will be responsible for the project’s implementation, execution, management and completion.

SCIB said IWSB will not be required to bear project losses under the agreement. The company said the terms, including the allocation of project losses, were negotiated after taking into account the parties’ respective roles, contributions and obligations.

Financing and land arrangements

SCIB also disclosed that IWSB had secured a RM19.2 million bridging loan facility for the development, with the project lands charged to the financier as security.

As at Aug 14, about RM9.95 million had been drawn down and used for project-related expenditure, including settlement relating to the project lands, issuance of a bank guarantee in favour of the landowners, payments relating to the advertising permit and developer’s licence, subdivision fees and consultant fees.

Following the fulfilment of the conditions precedent, SCIBE is responsible for servicing, repaying and fully redeeming the bridging loan, including interest, fees, charges, commissions and other sums payable. It may also use the remaining undrawn portion of the facility for the project, subject to the terms and conditions of the facility agreement.

The filing also disclosed a reimbursement amount of about RM4.13 million for project-related costs. The largest items comprised RM1.21 million for the sale and purchase of land under title CL 215283426, RM1.07 million in fixed deposits placed with the financier, RM535,865.95 in showroom costs and RM350,344 in loan legal fees and stamping costs.

Separately, a joint venture agreement (JVA) dated July 7, 2023 between IWSB and the landowners identifies an approximately 0.811-acre parcel in Penampang held under title NT 213042249 as the Landowners’ Land.

The landowners are entitled to RM2 million in consideration for making the land available for the project. RM3,000 was payable in cash upon execution of the JVA, while the balance of RM1.997 million is to be satisfied in kind through six apartment units, to be constructed by IWSB on the project lands and delivered free from encumbrances.

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