NCT Alliance Expands Landbank in Sabah with RM36 Million Putatan Acquisition
Property developer NCT Alliance Bhd (KL:NCT) continues its expansion in East Malaysia with the proposed acquisition of a majority stake in a Sabah landowner — a strategic move that bolsters its foothold in the high-growth Putatan district near Kota Kinabalu.
In a filing with Bursa Malaysia, NCT Alliance announced that its wholly owned subsidiary NCT Panorama Sdn Bhd has entered into a Sale and Purchase Agreement (SPA) with Datuk Yap Yiw Sin and Datin Ang Guan to acquire a 55.72% stake in Grorich Corp Sdn Bhd. The total consideration for the deal stands at RM36 million, to be fully settled via share issuance rather than cash.
📍 Strategic Acquisition in Putatan, Sabah
Grorich Corp owns a strategically located parcel of land in Putatan, a suburban district just 15 minutes from downtown Kota Kinabalu. The land sits within an urbanizing corridor already identified as a future development hotspot, driven by increasing demand for residential and mixed-use townships in Greater Kota Kinabalu.
“The proposed acquisition reaffirms the Group’s expansion efforts to increase its land bank in strategic locations in Malaysia and widen its development portfolio,” NCT Alliance stated.
Once the acquisition is finalised, NCT Alliance plans to seek the necessary regulatory approvals to commence a new development on the site, further reinforcing its commitment to Sabah’s real estate market.
💼 Deal Structure: 100% Share-Swap Transaction
NCT will not fork out any cash for the deal. Instead, the entire RM36 million purchase will be financed through equity-based instruments, broken down as follows:
| Payment Method | Amount (RM) | Details |
|---|---|---|
| Treasury Shares Transfer | 3.6 million | 7.5 million shares @ RM0.48 each |
| New Share Issuance | 32.4 million | 67.5 million new shares @ RM0.48 each |
| Total | 36.0 million | 75 million shares transferred in total |
Post-transaction, the 67.5 million new shares will represent 4.03% of NCT’s issued share capital, excluding treasury shares, as of May 30, 2025.
By using equity instead of cash, NCT aims to conserve liquidity, minimise gearing, and enhance capital efficiency — a move reflecting a growing trend among developers to structure landbank acquisitions through asset-for-share deals in volatile interest rate environments.
🏗️ Building on Momentum in Sabah
This latest move comes just three months after NCT Alliance inked a RM22 million acquisition for a 51% stake in Setara Juara Sdn Bhd, which holds the land for the upcoming Ion Marina Bay project in Putatan — a flagship integrated township spanning 249.7 acres, with a gross development value (GDV) of RM3.4 billion.
The project is set to be delivered in three phases over nine years, further cementing NCT’s long-term presence in the Sabah real estate scene.
In addition, NCT is gearing up for the launch of Ion Borneo Garden in Penampang, scheduled for the third quarter of 2025, with a projected GDV of RM175.5 million. The project features residential units complemented by community-centric amenities and green landscaping.
📊 Sabah: A Strategic Growth Frontier
Sabah’s real estate market has seen a resurgence in developer interest, especially in suburban districts like Putatan, Kota Kinabalu, and Penampang, due to:
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Proximity to major transport infrastructure, including the upcoming Pan Borneo Highway extensions
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High demand for affordable and mid-market housing among young families
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Cross-border investment interest from neighbouring Kalimantan as Nusantara (Indonesia’s new capital) develops
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Potential upside from Sabah’s tourism-led and logistics-driven economy
By securing a strategic land position in Putatan — close to the coastal highway, education institutions, and mixed-use commercial areas — NCT Alliance is positioning itself to tap into long-term demand trends while diversifying its national portfolio.
💬 Board’s Confidence in Long-Term Value Creation
In its statement to Bursa, NCT noted:
“The board believes the proposed acquisition will further enhance NCT’s reputation as a developer of quality homes in Malaysia and provide a solid foundation to capitalise on the growing real estate market in Sabah in the coming years.”
This strategic alignment supports NCT’s broader transformation into a nationwide, full-spectrum developer, combining township planning, resort-style living, and commercial real estate under one brand umbrella.
📈 Market Reaction & Corporate Outlook
As of market close on Tuesday:
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NCT Alliance shares rose by half a sen to 49 sen
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Market capitalisation stood at RM922.95 million
With an active pipeline that includes both West and East Malaysian projects, NCT is building a diversified revenue base to weather potential downturns and capture multi-regional growth.
Its capital-light approach, prudent landbanking, and focus on integrated developments — particularly in underserved urban corridors — positions it as a developer to watch in 2025 and beyond.
