Mah Sing to build a RM1.4mil Kota Kinabalu Convention City

Published May 30, 2013 by PropertyGuru.com.my

Mah Sing Group will transform a 9.33-acre land in Kota Kinabalu, owned by Yayasan Sabah Group (YSG), into a world-class waterfront project with a gross development value (GDV) of RM1.4 billion.

Along this line, Mah Sing’s 51 percent owned unit, Convention City Development Sdn Bhd, has recently inked a development agreement with YSG for an entitlement of RM163 million for the integrated project which will be called as the Kota Kinabalu Convention City.

“The total investment for the 9.33-acre piece of land at RM184.9 million is equivalent to 13.2 percent of the estimated potential GDV and will be paid over a minimum of 42 months,” said Mah Sing.

“Prime land in the heart of Kota Kinabalu is hard to come by, and we envision creating an iconic waterfront development. Kota Kinabalu Convention City will be to Kota Kinabalu what KLCC is to Kuala Lumpur, becoming a landmark in Sabah that will put it on the world map,” noted Group Managing Director Tan Sri Leong Hoy Kum.

Under the agreement, Mah Sing may also exercise an option for an adjacent 5.95-acre land. This could boost the project’s GDV by RM600 million, bringing its total GDV 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 Kota Kinabalu Convention City project, and the overall entitlement price for both phases will be 15 percent of the potential GDV of RM2 billion to be generated should we exercise the option,” explained Leong.

The project is located along the Coastal Highway and is adjacent to the forthcoming Sabah International Convention Centre (SICC). It will comprise a luxury hotel, office towers, shop offices, lifestyle retail, F&B outlets, a business hotel, as well as serviced residences.

Phase I is expected to take four to five year, and registration of interest will start as early as Q3 2013, Leong added.

Source: http://www.propertyguru.com.my/property-news/2013/5/9473/mah-sing-to-build-a-rm1-4mil-convention-city