KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB), via subsidiary SCIB Properties Sdn Bhd, has signed four sale and purchase agreements to buy land totalling 7.34 hectares along Jalan Bintulu-Sibu for RM18.4 million.
SCIB said it is still in the early stage of development planning for the land.
This makes it difficult to determine the overall development costs and consequently, to provide a definitive timeline for the project's start and completion.
"At this stage, SCIB is unable to determine the sources of funds to finance the development.
"However, once the land acquisition is completed and all relevant details are finalised, SCIB will submit the comprehensive development plan to the relevant authorities for approval," it said in a Bursa Malaysia filing.
SCIB said the acquisition is to expand its business operations through collaboration with developers to jointly develop and construct residential housing projects that use our own manufactured products.
"The properties will be converted into mixed development that brings sustainable revenue in both engineering, procurement, construction and commissioning (EPCC) and manufacturing segments.
"It is also more economically advantageous for SCIB to purchase agricultural land prior to its conversion to residential status considering that the cost of agricultural land is lower than that of residential land," it added.
SCIB said acquiring the agricultural land at this initial stage enables it to leverage cost savings, potentially enhancing the project's overall financial viability.