The 1st project in Kota Kinabalu will see APHB and Chase Perdana take on a mixed development
by S BIRRUNTHA / pic by RAZAK GHAZALI
AP HOLDINGS Bhd (APHB), a subsidiary of Koperasi Amanah Pelaburan Bhd (KAPB), has entered into an investment joint-venture (JV) deal with Chase Perdana Sdn Bhd and Academic Medical Centre (AMC) to invest RM4.3 billion on two upcoming projects.
The partnership aims to develop residential and commercial properties with a combined gross development value (GDV) of RM11 billion in Sabah and Selangor.
KAPB chairman Datuk Ilyas Mohamad said the first project in Kota Kinabalu, Sabah, will see APHB and Chase Perdana take on a mixed development of 25 acres (10.1ha).
The project would include the development of a home office, with small office or home office or SoHo concept, shopping complexes, luxury condominiums and bungalows with a GDV of over RM3 billion.
On the second project, Ilyas said APHB and AMC are planning to develop a hospital with a capacity of more than 400 beds and a university with an area of 141 acres (57ha) in Serdang involving a GDV of almost RM8 billion.
“Both developments are expected to take between five and 10 years to be fully completed with a total GDV of RM11 billion,” he said at the press conference after the signing ceremony of APHB, Chase Perdana and AMC in Kuala Lumpur last Friday.
Ilyas said AMC will leverage strong brand names through its JV partners from the US to serve the growing private healthcare market, addressing quality gold standard healthcare capability needs in Malaysia and the region, particularly in South-East Asia.
He hopes that the project will provide a unique value proposition to the country’s healthcare industry.
Meanwhile, Ilyas said the government should offer investment incentives to encourage more local companies to invest internally within the country.
He said this will trigger an economic growth that will improve citizens’ quality of life, as well as the nation’s economic well-being.
“The government currently gives a lot of encouragement to foreign investors in terms of incentives, but not much for local companies.
“This has made many Malaysian businessmen reluctant to invest in the country, unlike in the US and Europe where local companies are given plenty of incentives to help restart their businesses,” he said.
Ilyas said the new venture is expected to be an attractive and earning accretive asset to KAPB’s existing bouquet of investments.
Ilyas said KAPB has positioned itself as a leading investment house through strategic investments and aspire to be the investment choice of investors, particularly Malaysians at large.
Meanwhile, commenting on the ownership status of The Exchange 106 building by APHB, Ilyas said his party currently has a 51% stake in the building located at the Tun Razak Exchange.
“A part of this 51% stake we get from the Ministry of Finance, while the rest from Mulia Property Development Sdn Bhd. I can’t reveal the value of the purchase but the amount is very good,” he said.
Ilyas said APHB signed a sale and purchase agreement for the building over a year ago which is expected to be completed this June after being delayed following the Covid-19 outbreak.