Kota Kinabalu: Sabah is poised to benefit hugely from an upcoming mega mixed development worth RM7 billion in Meruntum, Lok Kawi, that will take 12 to 15 years to complete on land belonging to Yayasan Sabah.Chief Minister Datuk Seri Mohd Shafie Apdal said it is one of the biggest positive property developments in Sabah under his Warisan-led State Government and would include hotels and a theme park.
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The joint venture development is between YS and Tegas Bangsa Sdn Bhd, a special purpose vehicle company of Pavilion Real Estate Investment Trust (Pavilion REIT) to develop the land based on a mixed touristic and commercial development.
“Once this project is developed, it will become another attraction for Sabah because the location is very strategic as it is situated closely with the sea apart from existing several islands that I am sure will not only entice property buyers and investor but also tourists coming to Sabah in the coming years.
“Actually the location was one of the areas that had become an attraction to property investors but because of the Covid-19 outbreak, their intention was stunted.
“But now, YS has taken an initiative via this development project which we welcomed and lauded will bring many job opportunities as well as benefit local contractors,” Shafie said.
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He said this at a press conference after witnessing the signing of a joint development agreement between Yayasan Sabah represented by its Director Datuk Jamalul Kiram bin Datuk Mohd Zakaria and its Corporate Secretary Dr Ishak Johari while Tegas Bangsa Sdn Bhd was represented by its authorised signatory Jerrand Lim Jen Jiang and its business development director Wee Seng Fatt, at Sabah Administrative Centre, Friday.
In consideration of the land, YS shall be entitled to a minimum payment of RM840 million or 12 per cent of the Gross Development Value (GDV), whichever is higher.
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The mode of payment for YS entitlement shall be in cash (RM500 million) and in kind (RM340 million). Based on YS entitlement and taking into account the estimated value of the land, YS is expected to benefit an additional income of at least RM568 million from the proposed development.
Upon execution of the agreement, Tegas Bangsa Sdn Bhd would pay to YS a sum of RM8.4 million.
Shafie who is also Yayasan Sabah Board of Trustees Chairman said he has full confidence in this joint venture project and the company has vast and credible experience in construction and strong financial position to deliver the project.
“I believe this is a good initiative, first time YS ever signed a joint development with a private sector with a magnitude of RM7 billion to develop the project. It has never been there before and the land size is also not the biggest as we also have Benta Wawasan that are in millions.
“I believe under the current environment, not only in terms of getting liquidity into the system, people will have ample employment opportunities and provide chances for locals among small contractors in building up this location of the project.
“Indeed, I am so pleased and hope construction would start soon as possible and the development plan is in the pipeline. So the faster the better for all.
“If there is any hiccup, do not hesitate. I will be around to facilitate and I, myself, will monitor the progress of this project in the location site that is also near the KK Resort City project,” he said.Stay up-to-date by following Daily Express’s Telegram channel.
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