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.
Furthermore, KKCC is being positioned as an iconic waterfront development, much like what KLCC is to KL.
Project components include a luxury hotel, a business hotel, hotel suites, office towers, shop offices, lifestyle retails, food & beverage outlets as well as serviced residences. Registration of interest could commence by 2H13.
They expect this project to be well-received: (1) It sits on prime waterfront land within the heart of KK near KK Suria Mall; (2) Ready catchment from upcoming Sabah International Convention Centre located next to it (capacity: 5,000 delegates); (3) Within striking distance from several landmarks (e.g. Hyatt Regency Hotel – 1.5km).
To be sure, Sutera Avenue – Mah Sing’s maiden project in KK and located just 3.5km away from KKCC – is already off to a rousing start.
The shop offices and retail units have already enjoyed take-up rates of 83% and 44% respectively within few months from its launch last September. They have assumed average pre-tax margins of 20% for both Sutera Avenue and KKCC.
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