Asian Pac plans RM295m mixed development on Kota Kinabalu leasehold site
Construction group Asian Pac Holdings Bhd plans a RM295 million mixed development in Karamunsing, Kota Kinabalu, Sabah. The 119,479 sq ft leasehold site is jointly owned by two Chinese community organisations. The project comprises 573 commercial lots and serviced apartments, with completion targete
Construction and property development group Asian Pac Holdings Bhd plans a mixed development with an estimated gross development value (GDV) of RM295 million in Karamunsing, Kota Kinabalu, Sabah. In a Bursa Malaysia filing on Tuesday (Oct 20), the group said its wholly owned subsidiary Cahaya Riang Sdn Bhd had signed a development agreement with the United Sabah Chinese Communities Association of Kota Kinabalu and the Sabah United Chinese Chambers of Commerce.
The two organisations jointly own the 119,479 sq ft leasehold site in equal shares. The proposed project comprises 573 units in total, consisting of commercial lots and serviced apartments. The development is expected to commence in the third quarter of 2028, with completion targeted for the third quarter of 2031.
The estimated development cost is RM183 million, excluding the landowners’ entitlement of RM62 million. The GDV, development cost and unit count remain subject to final plans, designs, land-use conversion and relevant approvals. Under the agreement, the landowners will share equally an entitlement comprising RM9 million in cash consideration, an office building at an agreed value of RM42 million and a balance entitlement of RM11 million.
Of the cash consideration, RM2 million is payable upon signing and another RM2 million upon satisfaction of specified development approval conditions. The remaining RM5 million will be used towards the landowners’ real property gains tax obligations, including statutory retention sums. The office building will comprise four parcels of five storeys each, with a total built-up area of approximately 53,500 sq ft, including common areas.
The RM11 million balance entitlement includes RM4.112 million paid on the landowners’ behalf to a third party under a rescission arrangement and RM4.11205 million for the balance land premium and registration fees. The remainder will be settled through apartment units valued at the average selling price at the official launch, or cash, at Cahaya Riang’s discretion. Cahaya Riang will receive the remaining development units and proceeds, excluding the landowners’ entitlement. It will manage construction, legal and financial matters, sales and marketing, and bear the development costs.
The vacant site is held under Town Lease 017547027 in the district of Kota Kinabalu. Its 99-year lease expires on Dec 31, 2095. The existing land-use condition provides for a non-commercial multipurpose assembly hall. Asian Pac said the necessary development approvals remained outstanding, apart from the required building-height approval from the Civil Aviation Authority of Malaysia (CAAM). Cahaya Riang is required to obtain development or layout plan and building plan approvals within two years of the agreement’s date.
The signing follows fulfilment on Sept 22, 2026 of the condition precedent under a pre-condition agreement signed on Sept 23, 2025. That condition required approval from CAAM or the relevant authorities for a development height of at least 68 metres above mean sea level. The group intends to finance the project through internally generated funds and/or bank borrowings, with the funding mix yet to be finalised. Asian Pac said the arrangement would replenish its Sabah property development pipeline while reducing the upfront cash outlay otherwise required for an outright land purchase.
