Equity participation to enhance Serian District Council’s revenue base

KUCHING: Serian District Council (SDC) will receive 12 apartment units and three shop lots upon the completion of property developments at Danu Lake and the council’s former depot site near the lake in Serian.
 
The move is expected to strengthen the local authority’s long-term revenue base.
 
SDC chairman Datuk Peter Minos said the assets would come from equity participation in the two developments, with the council set to generate recurring income through rental collection once the projects are completed.
 
He said of the 12 apartment units, three would be located at Danu Lake while the remaining nine units would be at the old SDC depot site.
 
“The three shop lots are all at the old depot, onthe state land that has been alienated to SDC,” he said, adding that the arrangement would allow the council to benefit directly from commercial development taking place on its land.
 
Minos said the properties would eventually provide the council with a fresh and more sustainable stream of revenue, instead of depending solely on conventional sources such as assessment rates, licence fees and service charges.
 
“This is good for SDC because we will have equities that can bring in income through rental. It will help strengthen the council financially in the future,” he said.
 
The development at Danu Lake is part of the wider transformation of the area into a new growth and tourism node for Serian.
 
The lake area has in recent years gained attention as a leisure and event destination, with festivals and public activities helping to raise its profile among locals and visitors alike.
 
More recently, the Danu Lake area was developed for a major mixed-use development known as Danu Serian water theme park and apartment, a 34-acre project by Tecktonic & Sons Holdings SdnBhd.
 
According to Minos, the project includes serviced apartments, a hotel, commercial components and what has been described as Sarawak’s first water theme park, saying it’s like a mini town.
 
He believed that the development is expected to further elevate Serian’s image as an emerging township and tourism stopover.
 
Minos said SDC’s participation in the development reflected a practical approach towards making better use of council-owned land and assets.
 
“I happened to know this Tecktonic & Sons Holdings Sdn Bhd’s boss because they were doing the Aiman Mall and Lepapa in Samarahan. In a way I help to bring Tecktonic to start with the project in Danu Lake because at first they were faced with so many problems with the approval.
 
“If we from the council cannot helping things will be very slow. The first thing, when I met the Tecktonic boss, I asked if I can help him. He appreciated our help and that’s now they are moving very fast. The shop lots are coming up.
 
“Next to their development, we have an old depot site about three acres. I asked them to take over from us but they must give something to the council. So that’s how SDC got the equity,” said Minos, a former Samarahan Municipal Council chairman.
 
At the SDC’s old depot site, the developer is building 15 shop lots and 10-stories high rise apartment.
 
He noted that by securing apartment units and shop lots as part of the development arrangement, the council would be in a better position to build up its asset portfolio while also creating long-term financial returns.
 
With the projects expected to contribute both to urban expansion and council income, the developments around Danu Lake are seen as another sign of Serian’s steady progress as a growing regional centre.