Sapura to bank on Lot 91 KLCC project

PETALING JAYA: Sapura Resources Bhd is banking on its latest Lot 91 KLCC project to be the key driver of the group’s earnings now that it has sold off its education business for RM246.99mil.

Its shareholders yesterday had approved the proposal to dispose of its remaining stakes in APIIT Sdn Bhd, Asia Pacific University Sdn Bhd and Asia Pacific Institute of Information Technology Lanka to Ekuinas’ Ilmu Education Group Sdn Bhd.

Managing director Datuk Shahriman Shamsuddin said Sapura Resources was focusing on its Lot 91 KLCC project and planned to rent out the building once it’s completed in 2020.

“So our profit and cashflow will be coming from that direction,” he told reporters after the group’s AGM and EGM yesterday.

Based on Sapura Resources’ latest annual report for the financial year ended Jan 31, 2015, StarBiz’s earlier report mentioned that the investment division where its education business was parked made an operating profit of RM44.26mil, making it a major contributor to the company’s overall bottom line.

Shahriman said that the group’s Lot 91 KLCC, which is a 52-storey building with about 1.2 million sq ft attached to the Kuala Lumpur Convention Centre, promises a gross development value of about RM1.5bil.

“We hope to get this ready by 2020. We shall be putting the majority of the proceeds from the disposal into this project,” Shahriman added.

Sapura Resources had earlier formed a joint venture with KLCC (Holdings) Sdn Bhd (KLCCH) to form a company called Impian Bebas Sdn Bhd to develop 82,000 sq ft located along Jalan Kia Peng, just a stone’s throw away from the popular Suria KLCC shopping mall.

The Lot 91 KLCC project includes a premier office tower, exhibition space and a retail podium.

Sapura Resources owns 50% stake in Impian Bebas while KLCCH holds the other half.