A subsidiary of WCT Holdings Bhd has acquired the exclusive development rights to 411 acres of property in Lok Kawi, Sabah’s Putatan district.
WCT said in a bourse filing that its indirect 80 percent-owned subsidiary, WCT Perkasa Sdn Bhd, has entered into an agreement with Yayasan Sabah to acquire development rights over the land, which is divided into various lots, in phases for the purpose of undertaking a mixed development project.
The group stated that the acquisition would enable it to expand its land bank in Sabah without incurring significant upfront land costs, as the options to acquire development rights over the site are to be exercised over a 15-year period.
“If the developer exercises the options on all parcels, the total consideration must be 12 percent of the project’s actual GDV (gross development value), subject to a minimum of RM840 million (project land minimum guaranteed sum), or RM46.87 per square foot of the project land’s gross land area.
“The project land minimum guaranteed sum has been calculated based on the project’s preliminary estimated GDV of roughly RM7 billion,” WCT explained.
The group stated that the acquisition will strengthen the group’s footprint in East Malaysia’s property sector.
WCT has already developed property in Kota Kinabalu, specifically the d’Banyan Residency At Sutera. Additionally, the group has a 22-acre land bank in Inanam, Kota Kinabalu, which is earmarked for future development.
At the moment, the group’s property developments are concentrated in the Klang Valley and Johor.
WCT’s share price closed four cents or 6.15 percent higher at 69 cents, valuing the group at RM979 million.
Published by Zack Baharum