KUALA LUMPUR: Mah Sing Group Bhd is to develop the Kota Kinabalu Convention City (KKCC), a world-class waterfront integrated development on 9.33-acre site, with a gross development value (GDV) of RM1.4 billion.
Mah Sing had spent about RM184.9 million for land investment or equivalent to 13.2% of the estimated potential GDV for the proposed development,located next to the upcoming Sabah International Convention Centre (SICC).
The investment would be paid over a minimum of 42 months, the property developer said in a statement today.
Mah Sing, via its 51%-owned subsidiary, Convention City Development Sdn Bhd, today signed a development agreement with Yayasan Sabah to develop 8.33 acres of prime commercial land in Kota Kinabalu for an entitlement of RM163 million. Besides RM1 million to be paid upon execution of the development agreement, the rest shall be paid in four tranches over a minimum of 3.5 years, subject to fulfillment of landowners' obligations.
A building together with the 0.4 hectare (one acre) piece of land contiguous to the project was also acquired for RM21.9 million from Sasinma Sdn Bhd.
Mah Sing said via Convention City Development, it is also entitled to exercise an option for 5.95 acres of adjacent land which may generate additional GDV of RM600 million, potentially bringing up the GDV of Kota Kinabalu Convention City to RM2 billion.
"We may exercise the option for an entitlement price of RM117 million, within two years from the issuance of the separate issue document of title. This will provide further upside for our KKCC project, and the overall entitlement price for both phases will be about 15 per cent of the potential GDV of RM2 billion to be generated should we exercise the option," Mah Sing Group Managing Director Tan Sri Leong Hoy Kum said.
He also said Mah Sing had great confidence that the Kota Kinabalu Convention City would be the landmark project in Sabah.
"We expect to launch the project quickly in line with the company's fast turnaround business strategy. We intend to commence registration of interest by the second half of this year, as early as the third quarter.
"The lands surrounding Kota Kinabalu Convention City are already fully developed or earmarked for catalytic projects that has high impact for Sabah," Leong said.
Together with this acquisition, Mah Sing now has 44 projects, with a combined remaining GDV and unbilled sales of RM27.8 billion. - Bernama