KUALA LUMPUR: NCT Alliance Berhad has inked a memorandum of understanding (MoU) to acquire a 51 per cent equity interest in Sabah's property developer Setara Juara Sdn Bhd.
According to a filing with Bursa Malaysia, the company entered into the MoU with Setara Juara's shareholders, Herman Lee Show Kien and Melvin Lee Ying.
Setara Juara owns the development rights over three parcels of land measuring about 101.037 hectares located in Dumpil Bay in Putatan, Sabah.
The mixed development project envisaged on the said land has an estimated gross development value (GDV) of RM3 billion.
In a separate statement, NCT Alliance said the proposed acquisition aligns with the Company's strategic plan to expand its property development business particularly in Sabah.
It added that the project will stand to benefit from the recent launch of Sabah-Malaysia My Second Home Programme (Sabah-MM2H), which is expected to bolster foreigners' demand for high-rise properties and spur the property market in Sabah.
The company said both of Setara Juara's shareholders will continue to play an integral role as key partners in this development.
"This MoU is a key component of our group's long-term growth strategy for Sabah, Malaysia's second-largest state with a population of 3.6 million," said NCT Alliance executive chairman and group managing director Datuk Seri Yap Ngan Choy.
"This agreement marks an important step for the group as we expand our presence in Sabah, this time by collaborating closely with our new partners who possess proven expertise in property development in Sabah," he added.
NCT Alliance's share price closed at 51 sen on Friday, up 4.1 per cent or 2 sen with a market capitalisation worth RM862.7 million.