Asian Pac To Buy Kuantan Land For RM42.09 Mln, To Develop RM281.3 Mln Commercial Project

KUALA LUMPUR, Oct 28 (Bernama) -- Asian Pac Holdings Bhd (APHB) has entered into agreements with KotaSAS Sdn Bhd to acquire 8.69 hectares (ha) of leasehold land in Kuantan, Pahang, for RM42.09 million and undertake an adjoining commercial development with an estimated gross development value (GDV) of RM281.3 million.

In a filing with Bursa Malaysia, the group said its wholly owned subsidiary, Wangsa Masyhur Sdn Bhd, had signed a sale and purchase agreement for the land acquisition, while another wholly owned subsidiary, Everest Pioneer Sdn Bhd, signed a joint development agreement (JDA) covering about 11.41ha.

The adjoining parcels, totalling about 20.10ha within the KotaSAS integrated township, would enable the group to undertake an integrated development comprising a potential shopping mall and commercial shop lots.

“The proposals provide APHB with an opportunity to expand its property development presence and strategically strengthen its landbank in Kuantan, thereby enhancing the group’s foothold in the property development sector in Peninsular Malaysia,” it said.

The group said the land is earmarked for a shopping mall or other commercial developments, with the mall intended to serve as a retail anchor and draw visitors to the wider commercial precinct.

Under the JDA, Everest Pioneer would develop commercial shop lots in three phases, comprising an estimated 90 to 100 units per phase with an estimated development cost of RM146.9 million, excluding the landowner’s entitlement.

APHB said KotaSAS would receive the higher of 18 per cent of the project’s GDV or a minimum guaranteed consideration totalling RM62.03 million, subject to the agreement’s terms.

It added that the second and third phases would proceed only after sales of at least 80 per cent of the units in the preceding phase and payment of the relevant sums due to KotaSAS.

The development would commence upon obtaining all necessary approvals, which were expected by 2030, it said.

The land purchase would be paid progressively based on agreed milestones, while the balance of KotaSAS’s entitlement under the JDA would be paid progressively from sales proceeds.

The proposals would be financed through internally generated funds and/or bank borrowings, with the funding mix yet to be finalised. 

KotaSAS is wholly owned by Tanah Makmur Bhd.

-- BERNAMA