Gabungan AQRS, Suria Capital in RM1.8b project

PETALING JAYA: Gabungan AQRS Bhd and Suria Capital Holdings Bhd will be working together to develop a mixed development with an estimated net sale value (NSV) of RM1.8 billion within the vicinity of Kota Kinabalu Port.
Aimed at capturing a slice of the sizeable property market potential of Sabah, the project, which will be named One Jesselton Waterfront, will be constructed on a 7 acre plot of land.
The parcel of land, which is part of 23.25 acres allocated to Suria by the state government of Sabah, will feature a shopping mall called One Jesselton Mall with a net floor area (NFA) of 473,795 sq ft, a phase of corporate offices named Suria Corporate Office with a NFA of 74,487, sq ft and a phase of 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 condo residence as well as car park facilities, and a ferry ticketing office.
Suria 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 executive director Datuk Azizan Jaafar said the development will further strengthen the property division of the group, which is one of its twin growth engines, adding to its asset base and providing a substantial recurring income stream upon completion.
"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."
Suria Capital chairman Datuk Faisyal Yusof Hamdein Diegof said the proposed development will complement the proposed International Cruise Terminal.