Ibraco to Book RM22 Million Gain from RM35.4 Million Kuching Land Disposal

Ibraco Bhd has agreed to sell approximately 4.24 acres of land in Kuching, Sarawak for RM35.4 million, a move that will unlock the value of its landbank while paving the way for the development of a new private specialist hospital in the NorthBank township. The listed developer expects to recognise an estimated RM22 million gain from the transaction.

In a filing on Nov 19, Ibraco said the sale and purchase agreement was signed with NorthBank Specialist Hospital Sdn Bhd (NHSB) and Kuching Health Holdings Sdn Bhd, both linked to regional healthcare operator Health Management International Pte Ltd.

Land Approved for Specialist Hospital Development

The land—acquired in 2011 for RM1.44 million—is currently unencumbered and already approved for the development of a private specialist hospital. Under the agreement, NHSB will pay the purchase price in stages:

• 5% upon signing

• Remaining payments released progressively upon meeting conditions such as approvals from the state planning authority and Malaysia’s Ministry of Health

All conditions precedent must be fulfilled within two years from the signing date.

Enhancing Healthcare Access and NorthBank Township Growth

Ibraco said the disposal not only monetises the land but also supports the expansion of private healthcare services in Sarawak through the proposed hospital. The new medical facility is expected to strengthen the liveability of the NorthBank township, generate new job opportunities and stimulate demand for supporting services.

Proceeds from the sale will be allocated as follows:

• RM22 million to partly finance Phase 1 of the NorthBank Business Exchange

• RM5.74 million for working capital

• The remainder for transaction-related expenses

Market Performance

Ibraco’s shares closed unchanged at RM1.29, giving the group a market capitalisation of RM704.4 million. Year-to-date, the stock has risen more than 6%, reflecting steady investor confidence.

Relevance to KL–Selangor Industrial and Commercial Markets

While the disposal is centred in Sarawak, the expansion of healthcare-driven townships and mixed-use precincts mirrors trends seen across the Klang Valley — especially in high-growth zones such as:

• Commercial property in KL

• Office space in Bukit Jalil

• Industrial land in Selangor

• Factory corridors in Puchong

• Industrial property in the Subang area

As Malaysia continues to integrate healthcare, commercial and industrial components within master-planned townships, developments such as NorthBank highlight the importance of mixed-industry ecosystems that bolster demand for surrounding properties.