KUALA LUMPUR (Sept 4): Sarawak Consolidated Industries Bhd (KL:SCIB) is planning to acquire three parcels of leasehold land in Kolombong, Kota Kinabalu for RM15.2 million cash as part of its expansion plans into the state.

In an exchange filing on Friday, SCIB’s wholly-owned unit SCIB Ecobuild Sdn Bhd entered into a sale and purchase agreement with East Liberty Sdn Bhd on Thursday for the three parcels, together with rights and interest in an adjoining road reserve.

SCIB said the parcels comprise six existing double-storey shoplots that generate an aggregate monthly rental income of RM43,600. The other two land parcels are undeveloped and could be used for additional shoplots. The construction and EPCC company said it plans to retain the proposed units for a Sabah branch office. 

It is expected to be completed by the first quarter of 2027, said SCIB. 

“This acquisition gives SCIB a practical platform to deepen our presence in Sabah. It combines immediate recurring rental income with future development potential, while the planned Sabah branch office will place our team closer to the projects and opportunities we are pursuing in the state,” said SCIB chairman Datuk Chong Loong Men in a press statement.

As at July 23, an independent valuation by Knight Frank Malaysia put the market value of the three parcels at RM15.2 million.

SCIB said the acquisition will be funded through a combination of bank borrowings and internally generated funds.

Since April, the group has secured four projects in Sabah worth a combined RM90.28 million, while its property development arm entered into a co-development agreement in August for a 144-unit high-rise residential project in Penampang with an estimated gross development value of RM83.19 million.

On Friday’s market close, shares of SCIB ended flat at 11.5 sen. At its last price, the group was valued at RM87.8 million. Year-to-date, the stock has fallen by 32.35%.