KUALA LUMPUR (May 30): Palm oil and timber producer Jaya Tiasa Holdings Bhd (KL:JTIASA) is buying four parcels of land sited one kilometre away from the Sibu town in Sarawak for RM100 million in cash, as it bids to expand into property development.
In a filing with Bursa Malaysia on Friday, it said its subsidiary, Jaya Tiasa Property Sdn Bhd, signed a conditional agreement on May 30, 2025, to buy four vacant leasehold land parcels in Sibu from Yemas Development Sdn Bhd. The deal will be fully paid with the company’s own funds and is expected to be completed within two years. The deal does not need shareholders’ approval.
The land, valued at RM113 million, is being bought below market price. Its net book value as of Dec 31, 2024 stood at RM16.6 million.
Three of the four land parcels already have approval for a mixed-use development that includes homes, shops and a private hospital. The project will cost RM469.6 million and is expected to be worth RM612.7 million once completed. Jaya Tiasa may revise the plans, which could require further approvals.
Jaya Tiasa said construction is planned to start in 2026 and finish by 2031, depending on market demand. The development will need further funding for construction and other costs, to be covered through property sales, internal funds and possible bank loans.
It explained that the move is part of its strategy to reduce a reliance on palm oil, which is affected by global price changes, and to create more stable income through the sale and leasing of developed properties.
“We anticipate that the group will benefit from the expected growing demand for real estate in the central region of Sarawak,” it said in the filing.
In 2024, East Malaysia recorded 36,443 property transactions worth RM15.26 billion. By state, Sarawak dominated the region’s overall property transaction volume and value, with 25,923 transactions (71.1%) worth RM9.26 billion.
Jaya Tiasa posted a 50% jump in net profit to RM187.8 million for the nine-month period ended March 31, 2025. This was on a 14% jump in revenue to RM903.6 million.
Shares of Jaya Tiasa closed one sen or 0.9% higher at RM1.17 on Friday, valuing the company at RM1.14 billion. The counter has declined 10% year to date.
