KUALA LUMPUR (April 25): Malaysian Resources Corp Bhd (MRCB) said the Employees Provident Fund (EPF) has offered to acquire an 80% interest in ‘exchange’ land that the company will be receiving under the National Sports Complex privatisation project, for RM421.5 million.

MRCB will hold the remaining 20% stake in the 11.4 hectare (ha) land in Bukit Jalil, the company told Bursa Malaysia in a filing today.

The land is part of three parcels to be transferred by the Youth and Sports Ministry and Syarikat Tanah and Harta Sdn Bhd (Hartanah) to Rukun Juang Sdn Bhd (RJSB), owned 85% by MRCB Land Sdn Bhd, which in turn is a wholly-owned unit of MRCB.

The three parcels of leasehold “exchange land”, totalling 37.4ha, make up the RM1.632 billion consideration for the proposed privatisation job undertaken by MRCB to refurbish and upgrade facilities at the National Sports Complex.

RJSB was selected to undertake the job on Oct 28 last year in an open tender, and subsequently entered into a privatisation agreement with the federal government and Hartanah.

MRCB said EPF is proposing to buy the 80% interest in “Exchange Land 1” after it has been delivered pursuant to the terms of the privatisation agreement and transferred to the entity, which is directed by RJSB to hold the land.

MRCB, meanwhile, will subscribe for or purchase the remaining 20% interest in the entity, at a purchase price and upon the terms and conditions stipulated in the letter of undertaking by EPF, it said.

MRCB said EPF would settle the disposal consideration for `Exchange Land 1’ in two tranches — the first totalling RM397 million (or alternatively calculated on the basis of RM405 per sq ft), and the second totaling RM24.5 million (or alternatively calculated on the bases of RM25 per sq ft).

“The interest shall be delivered to EPF upon the receipt of the tranche one purchase price in full by RJSB,” MRCB said, adding that EPF would be appointed as its main contractor or project delivery partner to the development of the land.

“EPF undertakes that it shall enter into a joint venture agreement, a conditional sale and purchase agreement and other related agreements in connection with the sale and purchase of the Interest in the Entity, within 12 months from April 22.

“Prior to the signing of the agreements, MRCB shall provide EPF with a full market study report and a business plan, including a timeline for the development of the 'Exchange Land 1’.

“The agreements shall be subject to EPF being satisfied with the results of their due diligence,” MRCB said, adding that the approved plot ratio for development on the `Exchange Land 1’ shall be no less than 1:6.5. – theedgemarkets.com

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