PETALING JAYA: Mah Sing Group Bhd 's unit Convention City Development Sdn Bhd has acquired 9.33 acres of land in Kota Kinabalu to develop the Kota Kinabalu Convention City (KKCC), a waterfront integrated project with a gross development (GDV) of RM1.4bil.
The two parcels of land, next to the Sabah International Convention Centre was purchased from Yayasan Sabah and Sasinma Sdn Bhd for RM184.9mil -- equivalent to 13.2% of the estimated GDV and will be paid over a minimum of 42 months.
Development is expected to commence in 2014 and completed within five years.
It said Mah Sing is also entitled to exercise an option for 5.95 acres of adjacent land which would generate an extra GDV of RM600mil, bringing up the GDV of KKCC to RM2bil.
Managing director Tan Sri Leong Hoy Kum said the company may exercise the option for an entitlement price of RM117mil within two years from the issuance of the separate issue document of title.
“This will provide further upside for our KKCC project, and the overall entitlement price for both phases will be approximately 15% of the potential GDV of RM2billion to be generated should we exercise the option,” he said,
Mah Sing now has 44 projects with a combined remaining GDV and unbilled sales of RM27.8billion.