KUALA LUMPUR: Mah Sing Group Bhd’s unit, Convention City Development Sdn Bhd (CCD), has been granted an exclusive right by Yayasan Sabah to develop a tract in Kota Kinabalu for RM163 million cash.
In an announcement to Bursa Malaysia, Mah Sing said its unit had signed a development agreement with Yayasan Sabah for a landmark commercial development, which is called Kota Kinabalu Convention City, which has an estimated gross development value (GDV) of RM1.4 billion.
The proposed development is adjacent to the upcoming Sabah International Convention Centre (SICC) in Kota Kinabalu, Sabah. It measures 8.33 acres (3.3ha).
CCD was also granted an exclusive option to develop two parcels of adjacent land with a total land area of 5.95 acres for RM117 million.
Additionally, CCD has also entered into a sale and purchase agreement with Sasinma Sdn Bhd for the proposed acquisition of an additional one acre which shares a common border with the tract being purchased.
Currently under construction, SICC would be the main centre for convention activities and development of the meetings, incentives, conventions and exhibitions industry in Sabah.
Kota Kinabalu Convention City, which comprises a luxury hotel, a business hotel, hotel suites and office towers, is expected to commence development in the first half (1H) of next year.
On Tuesday, Mah Sing announced two other land acquisitions in Iskandar Malaysia and Kuala Lumpur with a total GDV of RM7 billion.
The group said altogether it would have a total of 43 projects with RM26.4 billion in remaining GDV and unbilled sales. It added that this would provide significant earnings visibility for seven to eight years.
Mah Sing’s Iskandar project, [email protected] is being built on a 35.26-acre piece of freehold land. The development comprises serviced residences, hotel or serviced suites, a retail podium and a street mall.
Its development in Kuala Lumpur, the Lakeville Residence in Kepong, has an estimated GDV of RM1.15 billion and spans over 12.38 acres. The residential area is targeted for its soft launch in 1H14.
“This is one of the last pieces of development land in a mature location in Kuala Lumpur,” said Tan Sri Leong Hoy Kum, group managing director cum group chief executive in a statement.
Meanwhile, Mah Sing’s Southville [email protected] South has obtained approvals for a direct interchange and additional parcels of land have been added to the project, boosting the size to 424 acres from 412 acres.
With an improved masterplan for the project, the enhanced GDV is now RM5.13 billion.
This article first appeared in The Edge Financial Daily, on May 30, 2013.
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