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Kuala Lumpur: KTI Landmark Bhd has received a letter of intent (LoI) from the Sabah Ministry of Tourism, Culture and Environment (KePKAS) to undertake the development of a new office building in Kota Kinabalu, amounting to RM70 million.

The Sabah-based integrated property developer said in a Bursa Malaysia filing that the proposed appointment involves its wholly-owned subsidiary, KTI Sdn Bhd, working alongside the Board of Trustees of Sabah Parks, the Sabah Tourism Board, and the Sabah Cultural Board for the development located on Jalan Wisma Budaya.

The office building, known as Wisma KePKAS, would span 36 months and includes the demolition of the existing Wisma Budaya on a site measuring about 0.040 hectares.

KTI Landmark said the project would strengthen and enhance the group’s existing order book and is expected to contribute positively to its earnings and net assets per share for the financial year ending 2026.

“The board is not aware of any material risk factors arising from the project other than those generally associated with the construction industry, such as changes in political, economic and regulatory conditions, labour and material shortages, and natural disasters,” it said.

However, the company noted that with its experience and expertise in similar construction projects, such risks are expected to be effectively mitigated.

The project does not require approval from shareholders or other regulatory authorities, and none of the directors or major shareholders have any direct or indirect interest in the project.

KTI Landmark’s board said it is of the view that the project and LoI are in the best interest of the company and its shareholders.