KOTA KINABALU: State government-owned Yayasan Sabah (YS) has inked a joint development agreement (JDA) with Tegas Bangsa Sdn Bhd that will see a projected RM7bil mixed development of land in Lok Kawi.
The proposed development will take place at the 391 acres of land belonging to YS at Lot A in Kampung Meruntum, where it will include condominiums, hotels, shopping complex and a theme park among others.
Through this agreement, the foundation stands to receive a minimum payment of RM840mil or 12% of the gross development value (projected at RM7bil), whichever is higher.
The signing ceremony on Friday (July 3), with YS director Datuk Jamalul Kiram Mohd Zakaria signing on behalf of the foundation and Jerrand Lim Jen Jiang representing Tegas Bangsa, was witnessed by Chief Minister Datuk Seri Mohd Shafie Apdal.
Tegas Bangsa is a special purpose vehicle of Pavilion Real Estate Investment Trust (Pavilion REIT), one of the largest retail concentrated REIT in Malaysia.
Shafie said the big-scale project, which is by the seaside, is expected to lure investors, property buyers, as well as tourists once rolled out.
“This is an encouraging collaboration as I am aware of the capabilities of the parent company, which has credibility not only in real estate and development but also for its strong financial position.
“This is one of the biggest developments that YS has signed with a private sector, where I think it will provide opportunities for local small contractors to contribute to developing this location.
“I hope they can start as soon as possible ... I myself will monitor how this project will be carried out, ” he said.
He expressed confidence that the development will attract investors from neighbouring regions like Sarawak, Brunei and Kalimantan.
Meanwhile, Jamalul said they hoped to see works on the mixed touristic and commercial development commence in the next five or six months, where it is expected to take 10 to 12 years to complete.
“Hopefully this project will become another income for YS to continue running its programmes, ” he added.
Asked if there would be any relocation of people from the land, he said,"Our area is at the seaside, so not so many people. If there are squatters, we will deal with that.”