Sabah Development Bank receives fresh proposal to revive stalled PacifiCity development

KUALA LUMPUR (Sept 24): Sabah Development Bank Bhd (SDB) said it and the private liquidator overseeing the stalled PacifiCity development have received a fresh proposal from an interested party, as efforts to revive the project remain ongoing.

The proposal was received on Sept 14 and is currently under review, the Sabah government-owned bank said in a statement on Thursday. All relevant stakeholders remain committed to exploring viable solutions for the project, it said.

The statement came after media reports on Wednesday quoted individuals claiming to represent purchasers of PacifiCity and insinuating that the bank had stalled, delayed or obstructed efforts to revive the project.

SDB was the financier of PacifiCity, a RM2 billion integrated waterfront development spanning 18.5 acres at Likas Bay, Kota Kinabalu, which was launched more than two decades ago.

The project, developed by Pacific Sanctuary Holdings Sdn Bhd, ran into financial difficulties and stalled in 2023. Pacific Sanctuary has since been wound up, with the project now under the administration of court-appointed private liquidators.

SDB said it and the private liquidator have actively conducted tender exercises and private engagements with parties interested in taking over and reviving the project.

Only two preliminary proposals were received despite a number of parties expressing initial interest, it said. However, both parties decided not to proceed following their respective due diligence exercises and assessment of the substantial capital required to complete the development.

“Any suggestion that efforts to secure a white knight investor have ceased as a result of such matters is not information known to SDB,” it said.

SDB said it remained committed to working with the private liquidator, purchasers, government agencies and other stakeholders to facilitate any credible proposal capable of delivering a sustainable revival of PacifiCity.

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