NCT Alliance plans to take up 51% interest in 101ha Sabah plot

• The proposed acquisition will be a key component of NCT’s growth strategy in Sabah as the group seeks to expand its property development business in the state, said its executive chairman Datuk Seri Yap Ngan Choy.

KUALA LUMPUR (Sept 20): Construction outfit and property development and hospitality management group NCT Alliance Bhd (KL:NCT) plans to acquire a 51% equity interest in Setara Juara Sdn Bhd, which holds the development rights to about 101.037ha or 249.67 acres of land in Putatan, Sabah.

The land, located in Dumpil Bay along Jalan Kota Kinabalu-Lok Kawi, has been earmarked for a mixed-development project, with an estimated gross development value (GDV) of about RM3 billion, according to NCT in a statement.

The proposed acquisition will be a key component of NCT’s growth strategy in Sabah as the group seeks to expand its property development business in the state, said its executive chairman Datuk Seri Yap Ngan Choy.

The group has inked a memorandum of understanding (MOU) with the existing shareholders of Setara Juara — Herman Lee Show Kien and Melvin Lee Ying — to negotiate for and finalise the terms of the proposed acquisition, the price of which has yet to be fixed.

“This agreement marks an important step for the NCT Group as we expand our presence in Sabah, this time by collaborating closely with our new partners who possess proven expertise in property development in the Sabah state,” said Yap.

Herman and Melvin, the current shareholders and directors of Setara Juara, will continue to play an integral role as key partners in the development if the acquisition goes through. Both are civil and structural engineers by profession, according to NCT.

On the prospects of the mixed-development proposed for the land, Herman said it will cater to local market needs. “Terrace houses are in good demand in Kota Kinabalu and welcome by the local banks for end-financing to the purchasers,” he said.

NCT Alliance’s shares closed two sen or 4.08% higher to 51 sen on Friday, valuing the group at RM855.75 million. Year to date, the stock has climbed 54.55% from 33 sen.

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