KUALA LUMPUR (Oct 14): Sabah-based property developer KTI Landmark Bhd (KL:KTI) has received a RM70 million letter of intent (LOI) for the development of a new headquarters building for the state’s Ministry of Tourism, Culture and Environment in Kota Kinabalu.
In a bourse filing on Tuesday, KTI said the group received the LOI for its proposed appointment by the state ministry together with the board of trustees of Sabah Parks, Sabah Tourism Board and Sabah Cultural Board.
The scope of work involves demolishing the existing Wisma Budaya and constructing a new office complex, to be named Wisma KEPKAS, on a 1.1-acre site on Jalan Wisma Budaya. Construction is expected to take 36 months.
KTI said the project will expand its current order book and contribute positively to its earnings and net assets for the financial year ending Dec 31, 2026.
If firmed up, the project will be KTI’s third major government-linked award this year. In August, KTI secured a RM107 million land-swap deal with the Sabah government to build a cultural complex in Kinarut, in exchange for 65 acres of land for residential development. The complex will be built on 58 acres of state land.
Earlier in July, the company won a RM130.6 million contract from the Construction Industry Development Board to build the Malaysian Building Academy campus in Papar.
Shares of KTI Landmark, which was listed on the ACE Market in June 2024, closed unchanged at 40.5 sen on Tuesday, valuing the group at RM324 million.
Note:
This article has been updated as KTI Landmark clarified that the LOI is not a binding award of contract.