Local developer SP Setia Bhd is branching out into Sabah, where it will develop a RM1 billion project, known as Aeropod @ Tanjung Aru, and a transportation hub as part of the Sabah Development Corridor (SDC).

The SDC was launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi on 29th January 2008, who also witnessed the signing of the development agreement between SP Setia subsidiary, Aeropod Sdn Bhd, and the Sabah government.

The agreement stipulates that Aeropod will build the transportation hub - in return for the state government procuring the alienation of three parcels of land measuring 59.21 acres, valued at RM110 million.  Once completed, the hub will consist of a transport terminal, new headquarters for Jabatan Keretapi Negri Sabah and ancillary buildings.

Sited 5 km southwest of the Kota Kinabalu town centre and 2 km northeast of Tanjung Aru, the designated plot of land is also located near the Kota Kinabalu International Airport and Low Cost Carrier Terminal 2.  In addition, a shopping mall, a 3-star and a 5-star hotel, condominiums and small office home office units have been planned as part of the Aeropod @ Tanjung Aru.

SP Setia Group MD and CEO Tan Sri Liew Kee Sin said that the project was aimed at capitalising on Sabah's anticipated economic boom.  The developer currently has projects in Peninsula Malaysia and Vietnam.

An SP Setia spokesman told StarBiz that the company would start construction of the transportation hub as soon as possible.  The company expects the cost of building the hub to be no higher than the agreed RM110 million.  Should everything proceed smoothly, Aeropod @ Tanjung Aru should be able to be launched by the end of 2009 or early 2010.

Analysts and industry experts believe that Aeropod @ Tanjung Aru would most likely cater to tourists, since Tanjung Aru is located within Kota Kinabalu's tourism belt.