Suria Capital inches up after inking deal for RM4.2b mixed commercial project in Kota Kinabalu

• In a filing to Bursa Malaysia on Tuesday, Suria Capital announced its collaboration with BEDI Development, a 75%-owned unit of EXSIM Development Sdn Bhd, to develop two parcels of land measuring approximately 14.23 hectares in Kota Kinabalu, Sabah.

KUALA LUMPUR (Feb 7): Shares of Suria Capital Holdings Bhd inched higher to RM2.15 in the afternoon trading session on Wednesday after the Sabah ports operator signed two shareholders' agreements with BEDI Development Sdn Bhd to establish two joint venture (JV) companies for the development of prime land within the Kota Kinabalu Port area.

Trading in Suria Capital was temporarily halted for one hour on Wednesday morning starting from 9am following the announcement of the development. Upon resumption of trade, the counter rose as much as two sen or 0.94% to a new high of RM2.15 before easing to RM2.14, still up a sen or 0.47%, at the time of writing. The counter has risen by a considerable 80.5% over the year.

At RM2.14, Suria Capital has a market capitalisation of RM740.05 million.

In a filing to Bursa Malaysia on Tuesday, Suria Capital announced its collaboration with BEDI Development, a 75%-owned unit of EXSIM Development Sdn Bhd, to develop two parcels of land measuring approximately 14.23 hectares in Kota Kinabalu, Sabah.

To facilitate the development, Suria Capital and BEDI Development inked two shareholders' agreements, forming two JV companies, namely Jesselton Docklands 1 Sdn Bhd and Jesselton Docklands 2 Sdn Bhd. These companies will undertake the development, construction, and completion of an integrated mixed-commercial project on Land 1 measuring 2.543 hectares held under Town Lease and Land 2, which is 11.69 hectares held under Country Lease, with a collective net development value of approximately RM4.2 billion.

As per the agreement, Suria Capital and BEDI Development will subscribe for 250,000 ordinary shares at RM1 per share, to be issued and allotted by each JV, allowing them to control 50% stakes respectively.

Suria Capital, which manages and operates eight major ports in Sabah through its wholly owned subsidiary Sabah Ports Sdn Bhd, has its largest shareholder in Qhazanah Sabah Bhd, an investment arm of the Sabah state government, holding a 45.39% stake based on the company's 2022 annual report.

Meanwhile, BEDI Development, a Sabah-based property developer primarily involved in property development and real estate agent activities, is known for its expansive portfolio ranging from industrial to high-rise residential and commercial projects. To date, EXSIM Development has launched 38 developments with a gross development value of RM14.53 billion.

Individuals Lim Aik Hoe and Lim Aik Kiat both sit on the board of directors of BEDI Development and EXSIM Development.

Suria Capital highlighted that Land 1 includes the Jesselton Point Ferry Terminal, serving as the gateway to the nearby islands at Tunku Abdul Rahman Marine Park, while Land 2 adjacent to it consists of the 10 acres of KK Port wharf and the surrounding water body.

The proposed mixed-commercial development on the development land, together with surrounding waterfront developments such as Jesselton Quay, Sabah International Convention Centre, and Kota Kinabalu Convention City, will collectively be known as Jesselton Waterfront City.

The JV is expected to contribute positively to the company’s future revenue stream, earnings, and profitability. With the strategic location and positive prospects of the property market in Sabah, the JV anticipates robust demand and growth potential.

Physical work on the project is slated to commence in early 2025, with the development of Land 1 commencing first, followed by the development of Land 2. The proposed development on Phase 1 of Plot 1 on Land 1 is estimated to be completed by 2028, while the entire project is expected to be completed within 12 years from the commencement date.

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