Shafie (centre) with (left to right) Ishak, Jamalul, Lim and Wee showing the signed YS-TBSB joint development agreement at Sabah State Administration Centre yesterday.
KOTA KINABALU: A record-breaking RM7 billion joint development agreement sealed between Yayasan Sabah (YS) and Tegas Bangsa Sdn Bhd (TBSB) will bring a different kind of lifestyle to Kota Kinabalu, said Sabah Chief Minister Datuk Seri Mohd Shafie Apdal.
He said TBSB, a special purpose vehicle company of Pavilion Real Estate Investment Trust (Pavilion REIT), proposed to develop the 391 acres of YS land, located at Lot A, Kg Meruntum, Lok Kawi in Putatan, as a mixed touristic and commercial development.
“I think for the first time Yayasan Sabah has signed a joint development with the private sector to the magnitude of RM7 billion. It has never been there before and the land size is not as big as you have the plantation that only costs a few million ringgit, but here we are,” said Shafie during a signing ceremony held at the Sabah State Administration Centre (PPNS) here yesterday.
“People will have job opportunities and at the same time it will enable some of the local, small contractors to contribute building up this location here,” he said, adding that the project will also help in boosting liquidity in the system.
“So indeed I am so pleased and I hope they can do the job as soon as possible, I think the development plan is in the pipeline, so I think the faster is better,” he added.
Shafie said he would personally monitor the YS-TBSB development project area, just like the 2019 launched KK Resort City project that would be implemented by a company that owns a land nearby.
“Since I took over, this is one of the property developments costing about RM7 billion, mindful of what is happening in the world and economic downfall…
“Yet there are Malaysians who are daring enough and also willing enough to form a joint venture with a GLC like Yayasan Sabah. Indeed I am very pleased that this has materialized.
“The design is really a different kind of life in Kota Kinabalu,” he added.
In consideration of the land, Yayasan Sabah will be entitled to a minimum payment of RM840 million or 12% of the GDV, whichever is higher.
Shafie said that based on Yayasan Sabah’s entitlement and taking into account the estimated value of the land, Yayasan Sabah was expected to benefit an additional income of at least RM568 million from the proposed development.
He added that the mode of payment for Yayasan Sabah’s entitlement should be in the form of RM500 million in cash and RM340 million in kind.
Upon execution of this agreement, TBSB shall pay the sum of RM8.4 million to YS.
According to YS director Datuk Jamalul Kiram Mohd Zakaria, the project was expected to commence between five and six months and was anticipated to complete after a decade.
He said the project would have little effect on the Kampung Meruntum population and Yayasan Sabah would deal with those affected in the area.
“Our land is at the sea itself. It will only affect a small number of people there. We will deal with the squatters or whoever, if their lands are affected. We will deal with them one by one,” Jamalul said when asked if the project would involve relocation of residents in the area.
He said the RM7 billion project, which included hotels and a theme park, was amongst the Yayasan Sabah initiative to raise funds that would be channeled back to education for the people, amongst others.
Jamalul said Yayasan Sabah was expected to garner about RM350 million from another project, consisting of hotels, condominium units and shopping complex, on a 10-acre land in front of the Oceanus Waterfront Mall.
Also at the signing ceremony were YS corporate secretary Dr Ishak Johari, TBSB business development director Wee Seng Fatt and its authorised signatory Jerrand Lim Jen Jiang.