KUALA LUMPUR: Sarawak Consolidated Industries Bhd
's (SCIB) wholly owned subsidiary, SCIB Ecobuild Sdn Bhd, has entered into a co-development agreement with Inland World Sdn Bhd to jointly develop a high-rise residential project in Penampang, Sabah.
In a statement, SCIB said the proposed development will be undertaken on two land parcels measuring a combined 1.65 acres.
The company said the project marks its entry into the property development segment and is expected to broaden its earnings base by creating new revenue opportunities across its property development and engineering, procurement, construction and commissioning (EPCC) businesses.
Under the agreement, SCIB Ecobuild will be entitled to 80% of the project's net development profit, while Inland World will be entitled to the remaining 20%.
SCIB said the project has completed the necessary planning and regulatory processes and will proceed in accordance with the terms of the agreement.
The company added that the development is expected to contribute positively to its long-term earnings growth and strengthen its presence in Sabah.
Non-independent non-executive chairman Datuk Chong Loong Men said the collaboration would broaden the group's earnings base while remaining aligned with its core construction and EPCC capabilities.
He added that the Penampang project would strengthen SCIB's presence in Sabah beyond its traditional construction activities while providing a platform to build its property development capabilities.
