KOTA KINABALU: State-owned Yayasan Sabah (YS) has inked a landmark joint venture with a Kuala Lumpur-based real estate developer to build a RM7 billion mixed commercial project at a famous coastline in the state.
Under the agreement, Tegas Bangsa Sdn Bhd (TBSB), a company under the Pavilion Real Estate Investment Trust (Pavilion REIT), will be tasked with developing 158ha of land belonging to Yayasan Sabah at Kampung Meruntum, Lok Kawi, in Putatan near here.
Yayasan Sabah director Jamalul Kiram said the development will include a theme park, condominium blocks, hotels, a shopping complex and offices.
He was happy to strike the deal with TBSB, a special purpose vehicle of Pavilion REIT, which he said is responsible for developing some of the biggest shopping malls in the nation’s capital.
“We’ve been trying to get developers to work on this place for some time. Now, we’ve managed to get Pavilion REIT to do it.
“The projected gross development value (GDV) of the proposed development is estimated at RM7 billion.
“It will take between 10 and 12 years to develop this project at Putatan,” he told reporters after a signing ceremony with TBSB’s representatives at the state administrative building here today.
Chief Minister Shafie Apdal, who witnessed the ceremony, believes the project is a good initiative to uplift the standard of living in the state.
He said he was looking forward to the windfall from the project, particularly the job and business opportunities arising from the big-scale undertaking.
“I think for the first time, Yayasan Sabah is signing a joint venture development with the private sector worth RM7 billion.
“I hope they can start as soon as possible. I think the development plan is in the pipeline — the faster the better. I will personally monitor this project,” he said.
According to the fact sheet provided, Yayasan Sabah will be entitled to a minimum payment of RM840 million, or 12% of the GDV, whichever is higher.
Based on Yayasan Sabah’s entitlement and taking into account the estimated value of the land, the state-owned company is expected to get an additional income of at least RM568 million from the proposed development.
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