Asian Pac plans RM281.3m shoplot project and RM42.1m land buy in Kuantan's KotaSAS township
Asian Pac Holdings Bhd has signed agreements for a commercial shoplot development with an estimated gross development value of RM281.3 million and the acquisition of adjoining land for RM42.1 million in Kuantan, Pahang. The projects cover about 49.68 acres within the KotaSAS integrated township, wit
PETALING JAYA (Oct 29): Asian Pac Holdings Bhd has signed agreements with KotaSAS Sdn Bhd for a proposed commercial shoplot development with an estimated gross development value (GDV) of RM281.3 million and the acquisition of adjoining land for RM42.1 million in Kuantan, Pahang. The proposals cover approximately 49.68 acres within the KotaSAS integrated township, allowing the group to plan the adjoining sites as an integrated commercial development, according to its Bursa Malaysia filing on Wednesday (Oct 28).
Wholly owned subsidiary Everest Pioneer Sdn Bhd has entered into a joint development agreement to develop approximately 28.20 acres in three phases, with 90 to 100 commercial shoplots proposed per phase. Another wholly owned subsidiary, Wangsa Masyhur Sdn Bhd, has signed a sale and purchase agreement to acquire a 21.48-acre leasehold parcel earmarked for a shopping mall or other commercial development. Asian Pac said the proposed mall is intended to serve as a retail anchor for the wider precinct, drawing on the group’s experience in mall development, leasing and operations.
Under the joint development agreement, KotaSAS is entitled to the higher of 18 per cent of the shoplot project’s GDV or a minimum guaranteed consideration totalling RM62.03 million. The parties may agree in writing to revise the consideration if there is a material variation to the development. The shoplot project’s estimated development cost is RM146.9 million, excluding KotaSAS’ entitlement. Both the GDV and cost estimates remain subject to the final development plans, designs and relevant approvals.
KotaSAS, a wholly owned subsidiary of Tanah Makmur Bhd, will retain ownership of the project land unless otherwise expressly provided under the agreement. Everest Pioneer will undertake the planning, financing, approvals, construction and sale of the development. Everest Pioneer must pay a RM1 million deposit for each phase, to be credited towards KotaSAS’ entitlement. The balance for each phase will be payable progressively based on sales proceeds received from purchasers.
The second and third phases may commence only after at least 80 per cent of the parcels in the preceding phase have been sold and the relevant sums due to KotaSAS have been paid. Asian Pac expects development to commence in 2030, subject to obtaining the necessary approvals. Each phase must achieve practical completion within 33 months of delivery of vacant possession of that phase, subject to permitted or mutually agreed extensions.
For the separate land purchase, RM27.36 million will be payable through nine instalments linked to milestones including approvals, construction progress, completion and the mall’s launch. The remaining RM14.72 million will be paid through three instalments over 36 months following the launch. The acquisition is expected to be completed around 2035. Both agreements remain subject to conditions precedent.
Asian Pac said the sites benefit from infrastructure already completed by KotaSAS, including access roads and utility tapping points. The group added that the sites are adjacent to the planned KotaSAS East Coast Rail Link station, which it expects to improve accessibility. The group intends to fund the proposals through internally generated funds and/or bank borrowings, with the funding mix yet to be finalised.
