PETALING JAYA: Furniture manufacturing and property group Sand Nisko Capital Bhd (SNC) has unveiled plans to develop a RM1.75 billion mixed development project in Melaka in partnership with colourful businessman Tedy Teow.

Teow is the Penang-born founder of the Mobility Beyond Imagination Group (MBI).

In a Bursa Malaysia filing yesterday, SNC said its wholly-owned subsidiary, Len Cheong Industries Sdn Bhd, had entered into a heads-of-agreement (HoA) with Evergreen More Sdn Bhd (EMSB) on their intentions and commitment to undertake the property development dubbed Meswara City.

EMSB, incorporated in 2017, is principally engaged in property investment and has an issued share capital of RM100 comprising 100 ordinary shares.

The filing said EMSB is 70%-owned by Tedy Teow and 30%-owned by his son, Chee Chow.

EMSB owns three plots of adjoining land (development land) measuring 519.5 acres in Alor Gajah, and is desirous to work with a “strategic partner” in carrying out the development plan, according to the filing. EMSB has yet to obtain the necessary approvals from the relevant authorities.

The project has three phases involving the building of shop offices, shop lots, drive-through restaurants, a convention hall, cultural village and hypermarket together with a university campus that can accommodate 10,000 students. It will also have residential units from low to medium cost houses, semi-detached units and bungalows.

Under the HoA, EMSB “shall provide and/or make available the development land for the proposed development and grant exclusive rights of the development land to Len Cheong”.

Meanwhile, Len Cheong is to develop and complete the construction of the proposed development and agree to provide the project funding.

In consideration of EMSB providing the development land for the project, it will be entitled to a 20% share of the project gross development value (GDV), which is to be determined at a later date.

The board of SNC appears optimistic about this project, believing that “the HoA has potential and would contribute positively to the group’s future earnings”.

Nonetheless, they were cautious to mention that these benefits would only be realised “should the project materialise”.

Share price surge

SNC’s share price skyrocketed as high as 68% yesterday or 17 sen to 42 sen, giving it a market capitalisation of RM102.30 million.

The counter saw 1.45 million shares changing hands yesterday, several times above the typical volume. In the prior five trading days, the counter saw between 10,000 and 170,200 shares traded per day.

However, the shares have since tumbled 21.4% or 9 sen to 33 sen at 2.59pm today, valuing the group at RM83.61 million.

Founded in 2009 with a start-up capital of RM1 million, MBI is headquartered in Dan Nok, Sadao on the Thai-Malaysian border, where it operates an entertainment complex and a resort.

The company also has business operations in Malaysia including “The M Mall” in Penang, along Jalan Datuk Keramat.

In Teow’s home state, MBI is said to have built an “Mpire”, expanding to housing development, a chain of hotels, an e-hailing service and even its own brand of smartphones.

Media spotlight on MBI

The MBI Group, however, has had its fair share of troubles. In May 2017, news reports said Malaysian authorities froze 91 bank accounts totalling RM177 million purportedly linked to MBI Group International.

In October 2019, it made headlines when around 100 Chinese nationals staged a peaceful protest outside their embassy in Kuala Lumpur, complaining about one of its investment schemes.

Last July, the Bangkok Post reported that Teow had been taken into custody by Thai immigration authorities for allegedly laundering money from online gambling in Thailand.

In January this year, the same newspaper reported that a Thai criminal court approved Teow’s extradition to China where he is wanted for allegedly operating a pyramid scheme.