Gabungan AQRS, Suria Capital to develop Sabah project worth RM1.8b net sale value

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KUALA LUMPUR (Mar 16): Property developer Gabungan AQRS Bhd has teamed up with Suria Capital Holdings Bhd to jointly develop a mixed development dubbed "One Jesselton Waterfront" in Kota Kinabalu, Sabah, which will have a net sale value (NSV) of RM1.8 billion.
 
In a statement this evening, the two companies said the 7-acre (2.83ha) parcel of land is part of the 23.25 acres (9.41ha) allocated to Suria Capital by the Sabah state government.

One Jesselton Waterfront will feature a shopping mall called "One Jesselton Mall" with a net floor area (NFA) of 473,795 sq ft, corporate offices with a NFA of 74,487 sq ft, and retail lots to be named Suria Retail with a NFA of 74,892 sq ft.

Additionally, the development will also include serviced suites and apartments, a condominium, as well as car park facilities and a ferry ticketing office.

Under the joint venture, Suria Capital (fundamental: 2.3; valuation: 1.8) will be entitled to 18% of total NSV of the project.
 
“There will be both cash and in kind considerations, whereby there will be an initial cash payment of RM12 million, followed by a payment in kind valued at RM166.4 million, to be settled three years following the execution of the initial cash consideration.

"On the fifth anniversary of the completion of the payment in kind transaction, there will be a final cash payment RM19.6 million or the balance 18% of the total NSV for the project, whichever is higher,” Gabungan AQRS and Suria Capital said in the statement today.
 
Meanwhile, the duo said the mixed development will feature a shopping mall (to be known as One Jesselton Mall), corporate offices (Suria Corporate Office), retail lot (Suria Retail), serviced suites and apartments, condominium residence, ferry ticketing office and car park facilities.

“The development will further strengthen the property division of Gabungan AQRS, which is one of our twin growth engines, adding to our asset base and providing a substantial recurring income stream upon completion," said Gabungan AQRS executive director Datuk Azizan Jaafar.

"Combined with the upcoming launches of Phase 2 and 3 of a 14.3-acre development in Kinrara Uptown as well as a 2.7 acre project in Damansara Perdana, we are optimistic of continuing to strengthen our position in the market,” he added.
 
Suria Capital chairman Datuk Faisyal Yusof Hamdein Diego said the proposed development will complement the proposed international cruise terminal – One Jesselton Waterfront – that is poised to become an iconic landscape as the city’s premier tourism frontier catering for both local and foreign tourists.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuation)