“Jaya Tiasa acquires RM100m Sibu land for mixed-use project as it diversifies beyond palm oil. First property venture valued at RM612.7m upon completion.“
Kuala Lumpur, 03rd June 2025, 11.00am – Jaya Tiasa Holdings Bhd has announced a strategic diversification into property development with the acquisition of four leasehold land parcels in Sibu, Sarawak, for RM100 million in cash.
In a filing with Bursa Malaysia on Friday, the Sarawak-based palm oil and timber player said its wholly owned subsidiary Jaya Tiasa Property Sdn Bhd entered into a conditional sale and purchase agreement (SPA) on May 30, 2025 with Yemas Development Sdn Bhd.
First Property Venture Near Sibu Town Centre
The land spans approximately 1km from Sibu town and is currently vacant. Valued at RM113 million, the parcels are being purchased below market value. As of 31 December 2024, their net book value stood at RM16.6 million.
The deal will be financed entirely through internal funds, and does not require shareholder approval. The acquisition is expected to be completed within two years.
Approved Mixed-Use Project Worth RM612.7 Million
Three of the four parcels have already received planning approval for a mixed-use development comprising residential units, commercial shops, and a private hospital. According to the company, the estimated gross development value (GDV) of the project is RM612.7 million, with an estimated development cost of RM469.6 million.
Jaya Tiasa said it may revise the master plan based on market needs, which may require fresh approvals.
Construction is scheduled to begin in 2026 and expected to complete by 2031, subject to market demand. Development funding will be sourced from unit sales, internal cash reserves, and potential bank financing.
Strategic Shift Toward Stable, Recurring Income
The move marks a significant shift for Jaya Tiasa, traditionally focused on palm oil and timber, sectors sensitive to volatile global commodity prices.
“This acquisition aligns with our strategy to reduce reliance on commodity-based revenue and diversify into more stable, recurring income through property development and leasing,” the group said.
It added that rising property demand in central Sarawak underpins the company’s confidence in its maiden venture.
Sarawak Leads East Malaysia in Property Transactions
According to NAPIC data, East Malaysia registered 36,443 property transactions worth RM15.26 billion in 2024. Sarawak accounted for 71.1% of the volume, with 25,923 transactions valued at RM9.26 billion, highlighting the state’s strength in the regional property market.
Strong Financial Backing from Core Operations
Jaya Tiasa’s diversification comes on the back of solid financials:
- For the nine-month period ended 31 March 2025, net profit surged 50% year-on-year to RM187.8 million,
- Revenue rose 14% to RM903.6 million, driven by steady performance in its plantation and timber segments.
Market Reaction
Shares of Jaya Tiasa closed one sen or 0.9% higher at RM1.17 on Friday, giving the group a market capitalisation of RM1.14 billion. The stock is down 10% year to date.
