Building the future
WHEN Malaysian Resources Corporation Berhad ( MRCB), one of Malaysia’s leading urban property development and construction groups, reported its 2015 performance on Feb 22, the results were nothing short of stellar – revenue grew by 12% to RM1,697mil and profit after tax grew by 116% to RM330mil.
The Group’s urban development land bank grew to 410 acres ( 165.9ha) and a gross development value of more than RM50bil.
These results, which can be directly attributed to the ongoing corporate transformation and deleveraging efforts implemented following the installation of the new management team led by group managing director Tan Sri Mohamad Salim Fateh Din, were the best achieved by the Group in 10 years.
“MRCB Group performed strongly last year despite challenging conditions, which was reflected in our net profit of RM330mil, a growth of 116%; our balance sheet strengthened as well with total assets standing at RM7bil at the end of the financial year,” says Mohamad Salim.
An example of innovative design, planning and execution, the Kuala Lumpur Sentral central business district ( CBD) development is unique and the first of its kind in Malaysia; a mixed development centred on an integrated transport hub.
Kuala Lumpur Sentral CBD is Malaysia’s largest transit hub, offering global connectivity, excellent investment opportunities and unrivalled business convenience. It was even granted XKL Global Destination Code by the International Air Travel Association for its airport check- in facilities.
At its nucleus is the RM1.1bil world- class transportation hub, Stesen Sentral Kuala Lumpur, the winner of the FIABCI – Malaysia Award of Distinction 2002 and finalist for FIABCI International Prix d’Excellence 2003.
Its infrastructure supports six rail networks – the KLIA Express Rail Link, KLIA Transit, Putra LRT, KTM Komuter, KTM Intercity and KL Monorail – with an average of 180,000 commuters passing through the hub every day.
The upcoming MRT Museum Negara station will be linked to Stesen Sentral via a pedestrian tunnel walkway and will significantly raise the average number of daily commuters to well beyond the 200,000 per day mark.
Kuala Lumpur Sentral CBD is now almost completed with only Lot F on its east side to be developed, comprising a gross floor area ( GFA) of 3.2 million sq ft ( 297,289.7sq m).
Overall, the RM18.4bil development has collectively garnered more than 17 awards from FIABCI such as The Edge- PAM Excellence Awards, Editors Choice Property Awards, Stevie International Business Awards and the Islamic Finance News Award Musyarakah Deal of the Year.
MRCB was already an established developer for many of Malaysia’s iconic developments when it pioneered the category of transit- oriented developments ( or TODs) with its vision for the Kuala Lumpur Sentral CBD development. This development paved the way for many of today’s developers to further interpret the category.
Never one to rest on its laurels, MRCB continues to raise the bar with as many as five new TOD projects in the pipeline, and its acquisition of several significant new pieces of land ( such as the 1.87- acre ( 0.76ha) German Embassy land in the heart of Kuala Lumpur with a gross development value ( GDV) of RM1.5bil) will further spur its growth and reputation as Malaysia’s urban transformation specialist.
Just as the industry is evolving rapidly, with more and more developers aggressively competing for a share of the pie, MRCB recognises that simply keeping up is not an option.
To stay in the lead, it recently embarked on an internal rebranding exercise to more accurately define and drive the way it does business.
Arriving at its new brand vision, which has been aptly articulated as “setting the standard”, MRCB sees its mission as transforming communities through innovation and sustainable design by embodying brand values of being courageous, creative, driven, customer- centric and accountable.
As a high- performance organisation, MRCB is determined to deliver the best products to its customers.
Ultimately, these products bring improvements to lives and communities. The outstanding success and urban lifestyle transformation that MRCB delivered with Kuala Lumpur Sentral CBD established the first true benchmark in TOD development for the Group.
As ever- increasing numbers of people flock to the Klang Valley and the Greater Kuala Lumpur area each year in search of jobs and opportunities, the pressure to improve mobility via road- and- rail transport to connect the capital city with its outlying communities and townships is at an all- time high.
The Malaysian Government is now putting an emphasis on mass rapid transit ( MRT), light rail transit and monorail transport as strategies to stimulate development in new areas. This has given rise to TODs.
Building on the lessons and the experiences of the seminal Kuala Lumpur Sentral CBD development, MRCB has since embarked on the development of five other TODs comprising PJ Sentral Garden City, Penang Sentral, Kwasa Sentral, Cyberjaya City Centre and KL Sports City in Bukit Jalil. These are the kinds of mega projects that define MRCB’s competitive edge.
PJ Sentral Garden City will be the first- ever TOD project designed around the extensive use of greenery to rejuvenate the centre of Petaling Jaya.
Located on 40 acres ( 16.19ha) of prime land to be developed over two phases, PJ Sentral Garden City is planned as a mix of commercial office towers and residential towers, a shopping centre and anchored by a 10- acre ( 4.05ha) public park.
Phase 1 of PJ Sentral Garden City is expected to be completed in 2018 while Phase 2 is targeted for completion in 2026.
Penang Sentral is set to be a catalyst for economic growth in the northern region.
The transformation of this almost 100- year- old public transportation focal point in Seberang Perai Utara, Butterworth, into an ultra- modern TOD will bring new levels of connectivity, convenience and convergence for the region’s ferry, railway, bus and taxi transportation modes. Upon completion, this 24- acre ( 9.71ha) development with a potential GDV of RM2.8bil is targeted to serve 180,000 commuters every day.
Kwasa Sentral has been planned as a blueprint for TODs of the future. It is designed to serve as the CBD for the exciting new 2,330- acre ( 942.9ha) Kwasa Damansara township in the Klang Valley. Kwasa Sentral’s GDV is expected to be higher than the currently projected RM8bil, as the 64- acre ( 25.9ha) parcel will take 12 to 15 years to complete over six phases that will see the construction of offices as well as residential, retail, leisure and hospitality components.
Cyberjaya is now home to more than 800 firms, including 40 multinational corporations, four A transit- oriented development is a mixed- use residential and commercial area designed to maximise access to public transport and often incorporates features to encourage transit ridership.
A TOD neighbourhood typically has a centre with a transit station or stop ( train, metro, tram or bus stop), surrounded by relatively highdensity developments with progressively lower- density developments spreading outward from the centre.
TODs are generally located within a radius of a quarter to half a mile ( 400m to 800m) from a transit stop as this is considered to be an appropriate scale for pedestrians.
The successful implementation of TODs will revolutionise the transport patterns and lifestyles of Malaysians, who can expect reduced travelling time between their home and workplace. universities and two colleges.
In view of future emerging challenges and opportunities, Cyberjaya City Centre has been planned as the next generation urban hub of Cyberjaya with seamless transport- oriented connectivity across its many different components – commercial blocks, an integrated lifestyle and retail centre, serviced residential complexes and a world- class convention centre.
It will propel Cyberjaya into a global technology hub that will enhance the application of various technologies and redefine the meaning of smart cities, eco- friendly developments, connectivity, innovation and living. Phase 1 has an approximate GDV of RM5.35bil for a period of seven years.