MRCB, Affin Investments seal deal on RM400 mil guaranteed CP/MTN

KUALA LUMPUR: Malaysian Resources Corporation Bhd's subsidiary MRCB Sentral Properties Sdn Bhd has appointed Affin Investment Bank Bhd as the principal adviser and lead arranger for its RM400 million commercial papers/medium term notes (CP/MTN) programme, which will be guaranteed by Danajamin Nasional Bhd.

Chief Executive Officer Mohamed Razeek Hussain said the financing is being raised for the development activities of its KL Sentral Park.
KL Sentral Park, a 982,000 sq ft mixed commercial development comprising five blocks of office buildings, retail shops and green spaces is now 18 per cent completed.

Mohamed Razeek said MRCB hoped to drawdown at least RM50 million of the issuance as soon as possible to part finance the development.
"This programme will allow us flexibility when to (drawdown) and we hope to do it in a most efficient way," he said after signing the agreement with Affin Investment pertaining to the CP/MTN programme on Wednesday July 28.

Mohamed Razeek said some RM35 million in internal funds have been used for the development, which is also known as Block E.
With a gross development value of RM600 million, the construction of KL Sentral Park started in the fourth quarter 2009 with its scheduled completion in 2011.

With occupancy rate reaching 60 per cent, Mohamed Razeek said MRCB was confident of securing full occupancy for KL Sentral, given its unique positioning and multiple business advantages.

"Interest in KL Sentral Park has been tremendous. Last year, we witnessed the signing of an agreement to lease between MRCB and SME Corp." More recently, SBM (Malaysia) Sdn Bhd also gave serious commitment to lease for 15 years.

So far, RM3.9 billion worth of projects have been completed within the KL Sentral and another RM7.5 billion worth is in progress.
KL Sentral is one of the many developments in progress, including Lots A, B, C,D, G and 348 Sentral and shopping mall Nu Sentral, all of which are in various stages of completion.--Bernama