MRCB working towards lowering debt level

LONDON: Malaysian Resources Corp Bhd (MRCB) continues to focus on lowering its debt level, which include spinning off its assets through direct sales and potentially listing its property and construction arms.

Chief operating officer Kwan Joon Hoe said the firm was working on reducing its gearing level to 0.5 times from 1.2 times currently.

“Reducing debt level is a continuous effort by the company. It is noteworthy that the bulk of our debt is backed by our infrastructure projects,” he said.

Kwan was speaking to reporters after the 7th Middle East Business Leadership Award here, where MRCB won the “Best Urban Property Developer Award” and “Best Transit-Oriented Development Award”.

“Listing our property and construction arms as separate entities is something we are looking at, but it is still at a discussion stage because we need to ensure that both business segments can be standalone entities. Right now, they are linked,” he said.

MRCB’s construction arm currently manages an RM7bil order book that includes the development of PJ Sentral, Cyberjaya City Centre, the northern transport hub of Penang Sentral and Kwasa Sentral in Sungai Buloh.

Meanwhile, Kwan said its property arm is targeting between RM1bil and RM1.5bil in sales this year from residential development projects next to KL Sentral, known as Sentral Suites.

He said properties at the KL Sentral area have been enjoying high occupancy rates and the firm will focus on residential properties in the surrounding area.