KOTA KINABALU: Putatan’s long coastline is set for a facelift after Yayasan Sabah struck a RM7 billion joint venture with a Kuala Lumpur-based developer to build a mixed commercial development in the area.
In what is one of the biggest projects by the state-owned entity, Yayasan Sabah has entrusted Tegas Bangsa Sdn Bhd (TBSB) to develop 391 acres of its land at Kg Meruntum, Lok Kawi near here.
A special purpose vehicle company under Pavilion Real Estate Investment Trust (Pavilion REIT), TBSB will oversee the construction of hotels, condominiums, a shopping mall and offices, among others, over the next 10 to 12 years.
Chief Minister Datuk Seri Mohd Shafie Apdal is excited at the prospects of the coastline being transformed besides the potential earnings for the state from the mammoth project.
“The location is quite strategic as it is near to several islands and can be an attractive proposition, not only for investors and real estate seekers but also tourists,” he said to reporters during a signing ceremony at his office today.
“I am confident that when the situation improves from Covid-19, it will be one of the places most sought after. Many people were actually looking for properties but because of the pandemic it has slowed down so we welcome this project.
“I will personally monitor this project.”
Earlier, Shafie witnessed the inking of the agreement between Yayasan Sabah director Datuk Jamalul Kiram and TBSB representative Jerrand Lim Jen Jiang.
Shafie was thankful that investors are not put off by the Covid health crisis and economic downturn to pump money into the state.
“I think for the first time Yayasan Sabah has signed a joint venture with the private sector to the magnitude of RM7 billion, it has never been done before.
“Mindful of what is happening in the world there are Malaysians daring enough to joint venture with government-linked companies like Yayasan Sabah.
“Before this materialised, I think there have been discussions for a couple of months so today is a meaningful ceremony.”
Shafie is also looking forward to ordinary Sabahans benefitting from the project.
“This will enable locals, small contractors to contribute in building up this location, so I am so pleased.
“I hope they can start as soon as possible. I think development plan is in the pipeline, the faster the better.
“It will definitely be an attraction to our neighbours Sarawak and countries like Brunei. Indonesia is also moving its capital to Kalimantan so I do believe that this is definitely a location where people will be enticed to invest in.”
Jamalul is looking to work commencing soon after TBSB submits its development plan.
“Hopefully by the end of the year, we will see something,” he said.
“We’ve been trying to get developers to look into this place for some time and now we managed to get Pavilion REIT – they have built one of the biggest shopping complexes in Kuala Lumpur.”
Yayasan Sabah will be entitled to a minimum payment of RM840 million or 12 per cent of the Gross Development Value (RM7 billion), whichever is higher.
Based on its entitlement and taking into account the estimated value of the land, Yayasan Sabah is expected to benefit from an additional income of at least RM568 million from the proposed development.