MRCB firms up deal to jointly develop RM6.25b GDV Ipoh Sentral

• The group on Friday inked an agreement with Ipoh Sentral Sdn Bhd (ISSB), following the memorandum of agreement signed between the parties in January, according to a bourse filing.

KUALA LUMPUR (July 11): Malaysian Resources Corp Bhd (KL:MRCB) has firmed up the partnership to jointly develop Ipoh Sentral, a transit-oriented development project in the Perak capital with a gross development value of RM6.25 billion. 

The group on Friday inked an agreement with Ipoh Sentral Sdn Bhd (ISSB), following the memorandum of agreement signed between the parties in January, according to a bourse filing.

ISSB is a 50:50 joint venture between Railway Assets Corporation and Silver Smart Sdn Bhd, owned by the Perak State Secretary (Incorporated).

MRCB said an unincorporated joint venture between the group and ISSB will be established, under which MRCB will be wholly responsible for developing Ipoh Sentral.

MRCB will pay ISSB RM348 million, subject to a minimum guaranteed consideration of RM198 million, to undertake the Ipoh Sentral development, the group said.

The consideration will be funded via bank borrowings and internally generated funds, it added.

MRCB was the master developer of Malaysia’s largest transit hub, KL Sentral. It is also redeveloping KL Sentral under a public-private partnership unit under the Prime Minister’s Department. 

“The proposed collaboration will enable the company to expand its transit-oriented development expertise to develop and build a modern transportation hub connecting various modes of transportation, and will also upgrade the quality of life of the people through the integrated development,” MRCB said on the Ipoh Sentral collaboration.

MRCB’s substantial shareholders comprise the Employees Provident Fund with a 36.21% stake, MRCB executive vice-chairman Tan Sri Mohamad Salim Fateh Din’s vehicle Gapurna Sdn Bhd with a 15.48% stake, and Lembaga Tabung Haji with a 5.35% stake.

Shares in MRCB ended half a sen or 0.93% lower at 53.5 sen on Friday, valuing the group at RM2.39 billion.

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