KUALA LUMPUR (June 5): Suria Capital Holdings Bhd (KL:SURIA), which operates eight major ports in Sabah, said it has entered into a deal to develop a mixed commercial project in the Kota Kinabalu Port area.

In a filing to Bursa Malaysia on Wednesday, the group said it will be jointly developing the project, known as the Jesselton Docklands 1 project, with Jesselton Docklands 1 Sdn Bhd (JD 1).

Suria Capital said the two parties will set up a project team that will be responsible for managing all aspects of the project’s execution and implementation.

Suria Capital will be entitled to at least RM180 million, representing 18% of the estimated net development value (NDV) of RM1 billion. This entitlement will be satisfied through RM45 million in cash and RM135 million in kind, the group said.

Suria Capital’s final instalment payment of RM135 million will be delivered in the form of a hotel, retail units, carpark spaces, or other commercial components, excluding Airbnb units for short, medium, or long-term stays, with the company having the right to select the units before JD 1 sells any of them.

Additionally, if the actual NDV exceeds RM1 billion, Suria Capital will be entitled to any excess entitlement, which will be satisfied by payment in kind, in the form of retail units, carparks, or other commercial components, excluding Airbnb units, for short-, medium-, or long-term stays.

On Feb 7, Suria Capital announced a collaboration with BEDI Development, a 75%-owned unit of EXSIM Development Sdn Bhd, to develop two parcels of land, measuring 14.23 hectares in Kota Kinabalu. This led to the formation of two joint venture companies, namely JD 1 and Jesselton Docklands 2 Sdn Bhd, tasked with undertaking an integrated mixed-commercial project with a collective net development value of RM4.2 billion.

Suria Capital added that the Jesselton Docklands 1 project is anticipated to be completed within six years from the unconditional date of the agreement.

Suria Capital’s stock closed one sen or 0.51% higher at RM1.97 on Wednesday, giving the group a market capitalisation of RM681.27 million.