PETALING JAYA: KTI Landmark Bhd will not dismiss any opportunity to enter into other states’ property development fields despite it being a predominantly Sabah-based developer.
Executive director Wilson Loke said should any opportunity for company growth arise in the form of a new project, the group will take it into serious consideration.
“We always look at what opportunities are made available to us and we leverage on that. If the deal is good, we will definitely consider,” he told reporters after the group’s online prospectus launch in Sabah yesterday.
According to Loke, the group, however, will need to set up a base where the development takes place as that is part of their commitment.
“We do not want to do things halfway. We have always been committed to doing things from A to Z,” he added.
The integrated developer currently has a few ongoing and upcoming projects across Kota Kinabalu, Tuaran, Sandakan and Papar, in Sabah, with a total of RM2.2bil in gross development value (GDV).
Loke said 30% of the projects were awarded by Sabah’s Housing And Urban Development Board (LPPB), while others are joint ventures or KTI’s own projects.
“To date, KTI has delivered projects with a total GDV of RM1.2bil, of which RM1bil is from the provision of design-and-build construction projects, while the remaining RM207.6mil is from our own property development projects,” he said.
Loke also said the group’s land bank stands at about 120 acres, excluding negotiations for other land acquisitions.
“We will be looking for more land but we will continue focusing on affordable housing rather than high-end homes,” he noted.
KTI launched its prospectus with the aim of raising RM48mil for its initial public offering (IPO), which will be used for expansion plans.
The group, which plans to list on the ACE Market of Bursa Malaysia on June 19, 2024, will use the largest chunk of the proceeds – RM20.7mil – for its working capital for The Logg.
The Logg is KTI’s first mixed-development project and the first joint development project with LPPB.
Group managing director Dr Gordon Loke said the landmark property in Luyang, Sabah, has an estimated GDV of RM1bil and consists of two blocks of condominiums, one apartment block, a four-star hotel and a commercial building.
“The allocation of proceeds for our working-capital requirements will reduce our dependence on external financing and allow us to undertake more projects concurrently,” he said.
A further RM18mil of the proceeds will be used to partly fund the acquisition of land in Sabah within the vicinity of its existing land bank for a future project in Alamesra, Kota Kinabalu.
The remainder of the proceeds will be used to purchase the new industrialised building system production line amounting to RM2.1mil, RM400,000 to upgrade software and systems, RM3mil to repay bank borrowings, while the remaining RM3.8mil will be for listing expenses.
Loke said the group worked hard to get to where it is today and is keen to see what other expansion plans are on the horizon for them.
“Listing at this point of time is a timely and strategic move for the group. We are the first property developer from Sabah to list on the ACE Market.
“Over the years, we have recorded good yearly revenue, which is from what I gather, uncommon for developers in Sabah. The listing will gear us up and get us ready for any potential projects or contracts.”