MRCB to develop RM7.46bil town centre

Development in Kwasa Damansara township to span 12 years

PETALING JAYA: Malaysian Resources Corp Bhd’s (MRCB) wholly-owned subsidiary, MRCB Land Sdn Bhd has been appointed to develop a mixed development project in the Kwasa Damansara township for RM7.46bil.

In a filing with Bursa Malaysia, the infrastructure-property company said that the management contract was awarded by Kwasa Sentral Sdn Bhd (KSSB), which is 70%-owned by MRCB.

“MRCB Land had on March 22 entered into a management contract with KSSB, for the appointment of MRCB Land as the management contractor in connection with the development and construction of a mixed development identified to be the town centre of the Kwasa Damansara Township, on a piece of land owned by KSSB measuring 64.3 acres.

“The development, which will span approximately 12 years from 2018 to 2030, is expected to be a residential and commercial hub with a plot ratio of 1 to 3.5, of which 60% is designated for commercial use and the remaining 40% is designated for residential use,” said MRCB.

The mixed development project is expected to have a total gross development cost of over RM8.55bil.

It will consist of six blocks of office tower, two blocks of hotel, one block of wellness centre, three retail blocks, 15 residential blocks and recreational facilities.

MRCB Land will fund the project via a combination of internally generated funds and bank borrowings, pending the progressive payments from KSSB.

“The proposed construction, which is in the ordinary course of business of MRCB and its subsidiaries, is the second development and construction project undertaken by the group for the Kwasa Damansara Township project.

“The proposed construction will enable MRCB group to continue undertaking large scale development and construction projects which showcases its engineering and construction expertise.

“The development which spans over 12 years will not only allow the group to enhance its construction and engineering project pipeline but is also expected to provide the group with a steady stream of income over the development and construction period, which in turn is expected to contribute positively to the group’s future earnings,” said MRCB in the stock exchange filing.

The construction of the mixed development project is subject to the approval of MRCB’s shareholders, apart from the approval of other relevant authorities, if required.