White knight to end stalemate

AFTER years of abandonment, the sea-fronting PacifiCity project in Likas, Sabah is close to securing a white knight made up of a consortium of local and foreign companies, including the local unit of Chinese construction giant Jiangsu Suzhong Construction Group.

A meeting was held in January in Kota Kinabalu by Sabah’s Local Government and Housing Ministry or KKTP, chaired by deputy permanent secretary Stanley Chong, involving all stakeholders.

Participants included representatives of RKN & Co, the court-appointed liquidator, a group of disgruntled unit buyers, and officials from the consortium, now the sole remaining bidder after earlier reports suggested multiple interested parties due to the project’s strategic location and tourism potential.

Sources say the consortium is led by Suzhong Construction (M) Sdn Bhd, a Malaysian-registered unit of Jiangsu Suzhong, a large Chinese multinational with extensive experience in large-scale national and international projects across China, Russia, the Middle East and Singapore.

The consortium is also said to include groups from Sabah and Peninsular Malaysia.

Sources say this consortium has been active in the bidding process since Datuk Raveendra Kumar of RKN & Co was appointed as liquidator by the courts last April. A year before that, Pacific Sanctuary Holdings Sdn Bhd, the original developer of PacifiCity, had been wound up by the courts.

Raveendra declined to comment, but Likas assemblyman Tham Yun Fook mentioned in a Facebook post that there was a meeting on the “redevelopment of the abandoned PacifiCity project, finally bringing good news”.

“The meeting focused on in-depth discussions regarding the redevelopment of the abandoned PacifiCity project.

“Positive progress was made during the meeting, with the liquidation company introducing a white knight, injecting new momentum and confidence into the project and marking a significant step forward in the redevelopment plan,” he wrote.

He added that constructive consultations took place on the future direction of the project.

“We look forward to officially launching the PacifiCity redevelopment project in 2026.”

One Sabahan individual at the meeting noted that there is a lot at stake in the revival of PacifiCity.

“It was a heated affair with all sides expressing their specific wants and interests,” he says.

He, however, adds that based on discussions during the meeting, it appears that the white knight is looking to take into account the interest of the disgruntled buyers, the well-being of Majlis Kebajikan dan Rekreasi Kakitangan Kerajaan Negeri Sabah (Maksak) and Sabah Development Bank (SDB).

“It is a fine balancing act that is not easy to achieve. The buyers of course want all their money back, but no white knight will give you 100%...maybe 60% or 70% of what they paid if they want out.

“If they ride along and finish their payments, they could end up owning a unit that is worth much more, considering the huge potential of this project, if executed well,” the Sabahan individual says.

He adds, “They (the white knight) have come up with an innovative way of doing this, considering that the project is big and there are enough levers to ensure the buyers of both the mall and condo units are not left out of developmental profits”.

While state-owned SDB was the main financier of the project, Maksak made the land available for development as a commercial venture to build long-term assets that support its welfare mandate.

Maksak caters to the well-being of retired civil servants in the state.

Another Sabahan property player at the meeting was Martin Tan, who is part of the white knight consortium.

He, however, declined to provide details besides saying, “The resolution to PacifiCity is long overdue. It has been an eyesore that has been bad for the property market here. Given the state’s commitment to invite foreign direct investment, we are cautiously optimistic that a resolution will be soon at hand”.

A document sighted by StarBiz 7 shows that Datuk Seri Dr Shafiq Sit is the adviser to the white knight consortium.

When contacted, Shafiq who is abroad, replied via a WhatsApp message: “The white knight’s investment into PacifiCity is a form of foreign direct investment for Sabah which will lead to job creation and more spin-offs. I will advise the white knight consortium to invest only (subject to their internal board decisions) after we strictly follow the court process led by RKN and the laws of the land. Many of the buyers are families that are hurting from the abandoned project.”

PacifiCity, once an ambitious, billion-ringgit waterfront development on the coast of Sabah had been abandoned since 2017.

The project was meant to be an integrated mixed development consisting of shop units, office spaces, residential units, hotels and a mall.

It was originally slated for completion in 2018.

The project attracted significant attention due to its prime location along the scenic waterfront of Kota Kinabalu, a gateway city to Sabah’s growing tourism and commercial sectors, as well as the wider Borneo region.

There were also early indications that international hotels could be included as part of the broader waterfront offering, which would have appealed to both tourists and business travellers.

Sabah is a well-known tourist destination with many flights coming from China and South Korea. The revival of PacifiCity is also in sync with the Housing Ministry’s ambitious plan to have zero abandoned projects by 2030, as elucidated in the 13th Malaysia Plan.