Independent advisers are bullish on Malaysian Resources Corp Bhd’s (MRCB) partnerships with the Employees Provident Fund (EPF) to jointly develop major property projects as these are expected to generate billions in revenue over the long term, reported The Edge.
In a letter addressed to MRCB minority stakeholders, Public Investment Bank said they should give their nod to the proposed collaboration between EPF’s wholly-owned unit Tanjung Wibawa and MRCB’s 85-percent-owned subsidiary Rukun Juang to develop three plots of leasehold land in Bukit Jalil into a mixed-use project valued at RM11.01 billion.
The independent adviser believes this is favourable to MRCB as it is expected to provide a steady income flow over the construction period of 20 years.
“The MRCB group would be able to collaborate with EPF to undertake the development, which would generate GDV of RM11.99 million based on the feasibility report, which would contribute to the future earnings of MRCB Group.”
“The proposed joint venture will also allow MRCB Group to expand its property development projects to its current land bank of 393 acres with an estimated total gross development value (GDV) of RM57.3 billion.”
Meanwhile, Kenanga Investment Bank is advising MRCB minority stockholders to acquiesce to the plan to jointly develop the 64.3-acre town centre of Kwasa Damansara township.
Dubbed as MX-1, the RM7.46 billion project will be undertaken by MRCB’s wholly-owned unit MRCB Land and Kwasa Sentral, where EPF holds a 30 percent stake and the remainder is controlled by MRCB.
“The proposed MX-I construction, with potential revenue of RM7.46 billion over the development period, represents an opportunity for the group to further strengthen its core business,” noted Kenanga.
“The development forms part of the Kwasa Damansara township project being undertaken by Kwasa Land Sdn Bhd on 2,330 acres of land strategically located in the vicinity of the mature suburbia of Petaling Jaya. Kwasa Land estimates that the Kwasa Damansara township will be able to generate a gross development value (GDV) of RM50 billion over the next 20 years.”
Furthermore, the large-scale project may potentially result in future opportunities and projects for MRCB in the Kwasa Damansara township, it added.
Image sourced from MRCB
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