MRCB to grow recurring income to between 20%-25%

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) plans to increase its recurring income to between 20% and 25% in the next two to three years.

Chief executive officer Datuk Mohamed Razeek Hussain said on Thursday, May 26 that the growth in recurring income would be underpinned by its highway project in Johor and also the property projects in KL Sentral, he told reporters after a signing ceremony involving the company and prospective tenants for the Nu Sentral Retail Mall here on Thursday.

MRCB's recurring income was about 8% in the financial year ended Dec 31, 2010.

Meanwhile, the company expects Nu Sentral to contribute RM70 million annually to group revenue, according to a report by Bernama.

To date, 60% of the net lettable areas or approximately 31,773 square metre (342,000 sq ft) has been booked by prospective tenants at an average rent of RM10 per sq ft.

"We expect full takeout before the opening of the retail mall in the third quarter 2012," Mohamed Razeek said.

Replying to a question, he said the company was capable of filling all the space before year-end but it was being careful on the retail mix and the quality of tenants.

Only selected tenants were chosen to occupy the retail mall based on their reputation and the commercial term of their brands, he said.

Among the 28 confirmed tenants were cinema-operator Golden Screen Cinemas Sdn Bhd, retail chain-operator Parkson Corporation Sdn Bhd, book store chain-operator MPH Bookstore Sdn Bhd and food court-operator Wesria Food Sdn Bhd.

Located to the south of KL Sentral, the seven-storey retail mall is managed by Nu Sentral Sdn Bhd, a 51:49 joint venture between MRCB and Pelaburan Hartanah Bhd.

The retail mall is currently working towards obtaining Singapore's BCA Green Mark and Malaysia's Green Building Index certification.

On the development of KL Sentral, Mohamed Razeek said between 35% and 40% of the development in the area had been completed, 30% and 35% was still ongoing, 20% was on the planning process while the remaining was still not decided.

The current gross development value of KL Sentral was estimated between RM15 billion and RM16 billion, and the development was expected to be fully completed in 2015, he said.