NCT Alliance buys 51% stake in Sabah property developer for RM22m in cash, land swap deal

• Back in September, both NCT Alliance and Setara Juara signed a memorandum of understanding for the deal.

KUALA LUMPUR (March 19): NCT Alliance Bhd has entered into a conditional sale of shares agreement (SSA) to acquire a 51% equity stake in Sabah-based property developer Setara Juara Sdn Bhd for RM22 million.

In a filing with Bursa Malaysia on Wednesday, the construction and property development group said its wholly-owned subsidiary, NCT Panorama, has signed the SSA with Setara Juara’s existing shareholders, Herman Lee Show Kien and Melvin Lee Ying, for the acquisition.

Back in September, both NCT Alliance and Setara Juara signed a memorandum of understanding for the deal.

Setara Juara owns the development rights for three plots of land measuring about 249.67 acres in Putatan, Sabah.

Dubbed Ion Marina Bay, the land has been earmarked for a property development project with an estimated gross development value of RM3.4 billion, according to NCT Alliance in a statement.

The project is expected to be developed over nine years from 2025 to 2033.

Ion Marina Bay is a mixed development project located two kilometres from the Putatan Town Centre and five kilometres from the Kota Kinabalu International Airport, which will feature residential, commercial and lifestyle components.

The proposed acquisition marks NCT Alliance’s second property development project in Sabah.

"This agreement marks another key milestone in NCT’s expansion into Sabah, reinforcing our vision of building sustainable communities in high-growth regions," said NCT Alliance executive chairman and group managing director Datuk Seri Yap Ngan Choy.

NCT Alliance added that Setara Juara’s Show Kien and Lee Ying are expected to continue playing key roles in the project’s development.

"Setara Juara has been deeply involved in shaping this development, and with NCT’s expertise and resources, we are confident this project will create a thriving, well-planned community that enhances Kota Kinabalu’s property landscape and brings lasting value to the state," Show Kien said.

The purchase will be funded through a combination of RM8.8 million in cash from internally generated funds or bank borrowings, while the remaining RM13.2 million will be through a “land contra”, NCT Alliance said.

The group did not state which land it is swapping for the deal.

Upon completion, Setara Juara will become a 51%-owned subsidiary of NCT Panorama and, in turn, an indirect subsidiary of NCT Alliance. Meanwhile, Show Kien and Lee Ying will each retain a 24.5% stake in the company.

As part of the acquisition, NCT Panorama, Show Kien and Lee Ying have also signed a shareholders’ agreement to govern their relationship in Setara Juara.

NCT Alliance expects the acquisition to be completed by the third quarter of 2025.

Shares in NCT Alliance rose three sen or 6.35% to close at 51 sen on Wednesday, giving the company a market capitalisation of RM960.59 million.

Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.