A unit of Malaysian Resources Corp Bhd (MRCB) plans to team up with the Employees Provident Fund (EPF) to build a mixed-use project at Bukit Jalil in Kuala Lumpur with a gross development value of about RM20.67 billion.
The development will sit on three land parcels with a combined area of 76.14 acres that will be given by the state to MRCB’s 85-percent-owned subsidiary Rukun Juang Sdn Bhd as payment for upgrading and refurbishing the facilities at the National Sports Complex in Bukit Jalil, in line with the privatisation of Kuala Lumpur Sports City.
The land will then be sold to Bukit Jalil Sentral Property Sdn Bhd for up to RM1.43 billion or RM430 psf. Notably, the EPF will own an 80 percent stake in the land buyer, while Rukun Juang will hold the remaining 20 percent.
Bukit Jalil Sentral also intends to appoint an MRCB unit to design and build the upcoming project, which has an estimated gross development cost of RM14.66 billion, including funding cost but excluding tax.
The large-scale development would be funded through loans, internally generated funds, stockholders’ advances and equity financing.
According to MRCB, it has decided to partner with EPF to develop a large-scale development in a prime location due to the fund’s strong branding and support, given that the latter is considered a sophisticated investor and owns a major stake of 33.4 percent in MRCB.
The joint venture project is anticipated to start by Q4 2017.
Meanwhile, MRCB has also partnered with the EPF for the construction of Kwasa Damansara township’s RM8 billion town centre on a 64.3-acre land in Sungai Buloh. Notably, the original size stood at 64.07 acres, but it became larger after the site was subdivided.
MRCB would hold a 70 percent stake on the JV firm Kwasa Sentral Sdn Bhd, but it has not yet fully paid for its shareholding worth a total of RM737.88 million.
Image sourced from The Star
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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