WCT Holdings Bhd is expanding its development efforts in Sabah and plans to build an RM7 billion mixed-use property in Lok Kawi.
WCT Perkasa Sdn Bhd, its indirect 80 percent-owned subsidiary, signed a deal with Yayasan Sabah on October 13, 2021, for the option to buy development rights over seven parcels of land totalling 411.4 acres in Lok Kawi.
"On the assumption that the developer exercises the options over all the parcels, the total consideration shall be 12 per cent of the actual gross development value of the project, subject to the minimum sum of RM840 million (project land minimum guaranteed sum), which is RM46.87 per square foot of the gross land area of the project land," it said in a stock exchange filing.
The consideration is expected to be paid to Yayasan Sabah within seven years from the date the building plans approval is obtained or the completion of the reclamation works, whichever is the later.
The land is strategically located, circa 9km from Kota Kinabalu International Airport and 18km from Jesselton Quay, part of a waterfront revitalisation project to transform Kota Kinabalu into a metropolitan city.
WCT said the acquisition would enable the group to enhance its landbank with strategic development land in Sabah without substantial upfront land costs.
"It is expected to enhance the profile and development portfolio of the group's property development division in East Malaysia, and provide WCT with stronger presence in the property market," it said.
WCT had previously completed d'Banyan Residency @ Sutera in Kota Kinabalu.
Further, it has a landbank measuring roughly 22 acres located at Inanam, Kota Kinabalu, intended for future development.
WCT said the growth prospects for Sabah remain bright.
The government's priority is to develop further the state, particularly its economic activities, infrastructure construction, property market, attractive private investment opportunities and its role as a premier eco-tourism destination.
WCT said that the proposed mixed-use development is expected to drive the tourism sector in Sabah, which is one of the three pillars highlighted in the Sabah Maju Jaya Development Plan (SMJ) 2021 – 2025.
The development comprises commercial, retail, hotels and resorts, offices, residential properties and other components, based on the disclosure.
According to WCT, the development is projected to help and expand Sabah's tourist industry, particularly by boosting the number of hotel rooms and holiday resorts.
WCT also said the project is expected to support and boost the tourism sector in Sabah, particularly in increasing the number of accommodation rooms and holiday resorts in Sabah.
It said, the land currently primarily consists of foreshore and land covered by water.
Before construction could begin, reclamation work would have to be completed, with the developer bearing the entire expense, it said.
