MRCB proposes RM419.05 mil Cyberjaya land sale for data centre development

PETALING JAYA (Aug 7): Malaysian Resources Corp Bhd (KL:MRCB) is proposing to dispose of seven parcels of land in Cyberjaya, Selangor to Digital Cosmos Malaysia Sdn Bhd for RM419.05 million cash under a conditional sale and purchase agreement (SPA).

In a Bursa Malaysia filing on Friday (Aug 7), MRCB said its indirect wholly owned subsidiary, Subang Sentral Sdn Bhd (SSSB), had entered into the SPA with Digital Cosmos Malaysia, a wholly owned subsidiary of Digital Cosmos (S) Pte Ltd. The purchaser is principally involved in the development and operation of data centres.

The proposed disposal involves seven parcels currently measuring approximately 36.66 acres, which are subject to a surrender and re-alienation exercise. Upon completion of the surrender and re-alienation exercise, the land is expected to be held under a single new title measuring approximately 45.81 acres.

The RM419.05 million disposal consideration was arrived at on a willing-buyer willing-seller basis, equivalent to about RM210 per sq ft based on the enlarged land area. It is virtually identical to the independent market valuation of RM419.1 million.

The properties comprise GRN 453427 Lot 10078, GRN 453428 Lot 10079, H.S.(D) 42238 PT 57733, GRN 453431 Lot 10074, GRN 453429 Lot 10073, GRN 454987 Lot 10059 (formerly H.S.(D) 36050 PT 50070), and H.S.(D) 42239 PT 57734, all in Cyberjaya, Sepang, Selangor.

Estimated RM81.4 mil gain

The proposed disposal is expected to result in an estimated gain on disposal of RM81.4 million.

MRCB intends to use RM350 million of the proceeds to repay borrowings, RM31.12 million for working capital, and the balance for estimated income tax and transaction-related expenses. The group estimates gross annual interest savings of approximately RM14.84 million from the proposed debt repayment, based on prevailing financing costs.

The group said the proposed disposal is intended to unlock the value of its non-core landbank, reduce gearing, improve cash flow and enhance its financial flexibility to fund other large-scale development and infrastructure projects.

Completion targeted by 4Q2027

Conditions precedent include, among others, the issuance of the new title deed, regulatory approvals and approvals relating to the purchaser's proposed data centre development, including approval for at least 182MW of power supply and confirmation of at least 9.41 million litres of water supply per day.

Barring unforeseen circumstances and subject to the fulfilment of the conditions precedent, the proposed disposal is expected to be completed in the fourth quarter of 2027.

Background

SSSB completed the acquisition of the seven parcels in March 2025. According to the current Bursa filing, the land had a total investment cost of RM299.7 million, comprising RM287.7 million for the purchase consideration and RM12 million in stamp duty, registration and professional fees.

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