MRCB allocates RM380m for KL land acquisitions

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) is allocating up to RM380 million to acquire more premium properties around Kuala Lumpur to add to its landbank following a rights issue earlier this year, said its CEO Mohamed Razeek Hussain yesterday.

“Part of the reason for the rights issue is so that we can have a war chest and participate in land acquisitions because we want to build our landbank,” he said after MRCB’s presentation at Invest Malaysia 2010.

MRCB had about 4,000 acres (1,619ha) of land in the Bandar Seri Iskandar township in central Perak, six million sq ft of (GFA) space at KL Sentral and some plots in Senawang and Kajang, Razeek said.

“Since the rights issue, we’ve had many offers,” he said.

Asked about MRCB’s role in the government’s planned development of 3,000 acres of land in Sungai Buloh, Razeek said MRCB was keen to provide its contracting and project management expertise.

“It is now our task to convince the Employees Provident Fund (EPF) to give us some work. It is EPF’s call. We are quite happy that the landowner is EPF, that way everybody can enjoy the benefits,” he said.

The government announced on Tuesday that MRCB would be the master developer of the tract of land in Sungai Buloh.

EPF is undertaking a conditional takeover for the remaining MRCB shares it does not already own, after its shareholding rose to 461.52 million shares or 33.78% following an allotment of 1.76 billion new shares under a rights issue.

This article appeared in The Edge Financial Daily, April 1, 2010.