SCIB to buy Kolombong parcels for RM15.2m, eyes shoplot development

PETALING JAYA (Sept 4): Sarawak Consolidated Industries Bhd (SCIB) is proposing to acquire three leasehold industrial parcels in Kolombong, Kota Kinabalu, for RM15.2 million, while obtaining separate rights over an adjoining road-reserve parcel through a substituted power-of-attorney arrangement.

In a Bursa Malaysia filing on Friday (Sept 4), SCIB said its wholly-owned subsidiary SCIB Ecobuild Sdn Bhd (SCIBE) had entered into a sale and purchase agreement with East Liberty Sdn Bhd to acquire Parcels A, B and C, which have a combined land area of 2,106.5 sq m, or about 0.52 acre.

The properties comprise Country Lease 015718706 (Parcel A), Country Lease 015718715 (Parcel B) and Country Lease 015718724 (Parcel C).

The three parcels are leasehold industrial land with tenures expiring on Dec 31, 2075. Parcel A, measuring 951.5 sq m, contains six existing double-storey shoplots, while Parcels B and C measure 907.1 sq m and 247.9 sq m respectively.

Parcels B and C are undeveloped and largely gravelled, and are currently used as car parks.

The six shoplots on Parcel A are identified as Lots 1 to 6. Applications for their individual titles have been submitted, with issuance still in progress.

The multi-tenanted shoplots currently generate aggregate rental income of RM43,600 a month. SCIB said they would provide the group with recurring income following completion, although the vendor does not guarantee that the existing tenancies will continue until then.

Potential for more shoplots

SCIB said Parcels B and C could potentially be developed into additional double-storey shoplots for sale, subject to market conditions, regulatory approvals and applicable title conditions.

The group also intends to retain one of the proposed units for a Sabah branch office.

The title conditions permit the land to be used solely for a double-storey workshop, warehouse-cum-office. While the building covenant for Parcel A has been fulfilled and an occupation certificate issued, those for Parcels B and C have yet to be fulfilled, with the prescribed construction required to be completed before January 2028.

The transfer of Parcels B and C is conditional upon East Liberty obtaining the requisite one-transfer permission from the Director of Lands and Surveys within five months of the agreement, or such further period as the parties may agree in writing.

Parcel D, held under Country Lease 015718733, is a road reserve serving Parcels A, B and C. It is registered to Ng Shen Cheong Construction Co Sdn Bhd rather than East Liberty.

Under the proposed deed of substitution, SCIBE is to replace East Liberty as the constituted attorney for Parcel D rather than acquire registered ownership of the parcel.

SCIB cautioned that the arrangement may not confer rights equivalent to registered ownership, and that any invalidity, termination, restriction or challenge could affect SCIBE's use of the road reserve and access to Parcels A, B and C. The filing also said encumbrances, if any, affecting Parcel D are currently unknown.

Purchase matches valuation

The RM15.2 million consideration for Parcels A, B and C was arrived at on a willing-buyer willing-seller basis, taking into account an independent valuation by Knight Frank Malaysia Sdn Bhd.

Knight Frank valued the three parcels at RM15.2 million as at July 23, 2026, with a forced-sale value of RM11.5 million. Parcel A was valued using the comparison approach, while Parcels B and C were valued using the income approach by residual method.

The consideration comprises RM10.3 million for Parcel A, RM3.8 million for Parcel B and RM1.1 million for Parcel C. A nominal RM1 consideration is attached to Parcel D, bringing the exact contractual consideration to RM15,200,001.

The acquisition will be funded through a combination of bank borrowings and internally generated funds.

SCIB said the acquisition is in line with its strategic expansion into property development and would complement its existing construction capabilities.

Since April, SCIB has secured four projects in Sabah worth a combined RM90.28 million. On Aug 19, SCIBE also entered into a co-development agreement for a 144-unit high-rise residential project in Penampang with an estimated gross development value of RM83.19 million.

The proposed acquisition is expected to be completed by the first quarter of 2027, barring unforeseen circumstances and subject to fulfilment of the agreement's terms and conditions.

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