MRCB bids for French Embassy land

KUALA LUMPUR (April 14): Malaysian Resources Corp Bhd (MRCB) said it has submitted a tender to acquire the 3.2ha piece of land that belongs to the French Embassy in Jalan Ampang and is still waiting for the outcome.

“We will make the appropriate announcement to Bursa Malaysia in accordance with the listing requirements, as and when required,” it said in a filing with Bursa yesterday.

In December last year, The Edge Financial Daily reported that the land would be sold via an exclusive tender by CB Richard Ellis (CBRE) Malaysia. The French government was reportedly expecting bids of around RM600 million, which equates to about RM1,800 per sq ft.

MRCB also came out to say that its recent share swap deal with DMIA Sdn Bhd was to enhance its strategic focus on its current development projects.

“This is in line with MRCB’s focus on offering innovative and focused development that seeks to fulfil the aims of various market segment buyers that appeal to various lifestyle requirements, and at the centre of this focus is the continuous effort to increase land bank holdings that will allow the diverse development ideas to unfold.

“This has shifted the group’s main thrust to developing ideas for the acreage it holds,” it said in a statement yesterday.

On April 1 this year, MRCB signed a share swap agreement with DMIA under which DMIA will transfer its 100% equity interest in Lotus Terrain Sdn Bhd, which will undertake the construction works of the Klang Valley double-track rehabilitation project. In exchange, DMIA will transfer its 30% stake in Country Annexe Sdn Bhd to MRCB.

MRCB said the swap is a win-win situation for both parties and will allow MRCB to be fully in control of its development work via Country Annexe, which includes developments in Brickfields.

In a separate proposal, MRCB will dispose of its 70% stake in Paradigma Berkat Sdn Bhd to DMIA for RM39 million, which will in turn allow DMIA to be fully in control of its business direction via Paradigma Berkat.

This article first appeared in The Edge Financial Daily, on April 14, 2015.