NCT Alliance Bhd (KL), a construction and property development group, is set to expand its presence in Sabah through the acquisition of a 51% equity interest in Setara Juara Sdn Bhd, a company holding the development rights to 101.037 hectares of land in Dumpil Bay, along Jalan Kota Kinabalu-Lok Kawi. This prime land is earmarked for a mixed-development project with an estimated gross development value (GDV) of RM3 billion.
This strategic acquisition aligns with NCT Alliance’s long-term growth ambitions, particularly in expanding its footprint in Sabah’s burgeoning property market. The executive chairman of NCT, Datuk Seri Yap Ngan Choy, highlighted that the acquisition is a crucial step for the group as it partners with experienced developers in the state.
Key Details of the Acquisition
NCT Alliance has signed a memorandum of understanding (MOU) with the shareholders of Setara Juara, Herman Lee Show Kien and Melvin Lee Ying, to formalize the terms of the acquisition. The acquisition price is yet to be finalized.
Herman and Melvin, both civil and structural engineers, will remain key partners in the development if the acquisition proceeds. Their expertise in property development in Sabah is expected to be instrumental in the success of the project.
Strategic Importance of the Project
The land in Dumpil Bay, located along the bustling Kota Kinabalu-Lok Kawi corridor, is considered a highly attractive area for new property developments. The proposed mixed-development will cater to the local market, offering a variety of residential and commercial properties that meet the growing demand in Kota Kinabalu.
According to Herman Lee, terrace houses are in high demand in Kota Kinabalu, which will play a key role in the project’s success. Additionally, local banks are supportive of end-financing for purchasers, making it easier for homebuyers to secure loans.
Expansion into Sabah’s Property Market
The acquisition of Setara Juara marks NCT’s first major foray into Sabah’s property market, signaling a broader strategy of expanding into key growth regions across Malaysia. Sabah, with its fast-growing population and increasing demand for quality housing, presents a significant opportunity for NCT Alliance’s property development division.
As Datuk Seri Yap Ngan Choy noted, the collaboration with Herman and Melvin will allow NCT to leverage local expertise and deliver developments tailored to the specific needs of the Sabah market.
Strong Market Performance
NCT Alliance’s stock has performed exceptionally well in 2024. As of Friday, the company’s shares rose 4.08% to 51 sen, giving the group a market capitalization of RM855.75 million. Year-to-date, the stock has climbed 54.55% from 33 sen, reflecting growing investor confidence in the company’s growth prospects.
Conclusion
The acquisition of Setara Juara Sdn Bhd by NCT Alliance is a significant move that will not only enhance the company’s portfolio but also strengthen its presence in Sabah, a state with considerable potential for property development. With a GDV of RM3 billion, this mixed-development project in Dumpil Bay could play a transformative role in meeting the housing needs of Kota Kinabalu while contributing to the overall growth of the state’s economy.
