Ports Operator Suria Plans to Diversify Into Property
Development
Artist’s impression of Jesselton Quay, Kota Kinabalu
Sabah ports operator Suria
Capital Holdings Bhd is
contemplating a move into
property development, as it
strategises to further diversify
its businesses.
Suria Group started out as
a financial institution before
diversifying into port operations
and related businesses. Its
core businesses include
bunkering services, contract and
engineering.
The group currently has a
property subsidiary, Suria
Bumiria Sdn Bhd, which
oversees a joint-venture project,
Jesselton Quay, with Kuala
Lumpur-based developer SBC
Corp Bhd.
An executive from the group
said the property arm only
managed the group’s asset, the
Jesselton Point ferry terminal.
The facilities it manages include
the passenger terminal for
boating services to the Tunku
Abdul Rahman Park, some retail
food and beverages outlets and
an indoor futsal centre.
When Jesselton Quay is
completed, Suria Bumiria will
also manage the development
with SBC and other facility
partners in the waterfront
mixed development.
“Yes, we have plans to manage
the completed properties
in Jesselton Quay with our
partners in the future, but
we are also looking to go into
property development by
ourselves,” the executive told
StarBiz after the loan-signing
ceremony between SBC and
RHB Bank Bhd.
The executive said Suria
currently owned two parcels of
land to be redeveloped – the
16.25-acre land etched out for
Jesselton Quay and another
seven acres adjacent to it
where the Jesselton Point ferry
terminal sits.
The group has earmarked the
seven-acre land to be developed
into Suria’s office headquarters
and turn the ferry terminal into
a water-transportation hub
offering ferry, boating services
and water taxis. However,
Suria has not confirmed if it is
developing this seven acres on
its own.
“This will be the first watertransportation hub in
Malaysia that offers water taxi,
connecting locals and visitors
to nearby places of interest like
Tanjung Aru, the city centre and
Likas Bay,” the executive added.
SBC launched a new masterplan
last Friday, which it said was
essentially modelled after
waterfront developments such
as
Victoria & Alfred Waterfront
in South Africa, Marina Bay
in Singapore and Xintiandi in
Shanghai.
The first phase of the project is
estimated to be unveiled by July.
Under the Jesselton Quay JV,
Suria is the landowner and will
facilitate the development of the
waterfront project. SBC has the
exclusive rights to develop the
entire project.
RHB Research Institute
transportation analyst Jerry
Lee said in a report that
based on net saleable value
of RM1.8 billion, the Jesselton
Quay project would provide a
minimum guaranteed return to
Suria of at least RM324 million,
a guaranteed 18% of NSV, that
will be paid in cash or in kind in
eight tranches for the next eight
years.
SBC obtained a RM240 million
loan from RHB Bank Bhd for
working capital and bridging
loan for the RM1.8 billion gross
development value JV with Suria,
which went unconditional on
the same day.
With the JV signed, SBC’s total
GDV will leapfrog from RM3
billion currently to RM4.8 billion.
Suria also said it had obtained
the land title as stipulated
under the port privatisation
agreement.
RM2 Million Ceiling Price
Proposed for Johor
The state
government has
welcomed the
address by the
Sultan of Johor
Sultan Ibrahim
Sultan Iskandar
proposing the ceiling
price for foreign
buyers for landed
properties in the
state to be set at
RM2 million.
Johor housing and
local government
executive committee
chairman Datuk
Abd Latif Bandi
said the proposed
ceiling price would
enable the state
government to
control the sale of
landed properties to
foreigners.
“This, in turn, will
protect the interests
of local buyers
as they will not
have to compete
with foreigners.
I also agree that
the ceiling price
should be higher
in Johor because of
its proximity with
Singapore.”
He said the ceiling
price should be
based on the
situation in the state.
“In