According to a Bursa announcement, MRCB is forking out some A$6.57 million (RM20.64 million) for the Australian venture, entering into a shareholders and subscription agreement with three individuals and shareholders of Yes 88 — Choong Kai Wai, Tam Cheok Wing and Chang Chai Kin — who are Malaysians involved in the property development business in Australia.
In its Bursa announcement, MRCB said Yes 88 will issue new shares to it and dilute the existing shareholder interests, thus leaving the current shareholders with 30% of Yes 88.
Yes 88 owns 5,025 sq m of land located 15km from Melbourne's city centre and within walking distance of major education institutions, easily accessible by major roads and a tram service.
MRCB and the existing shareholders of Yes 88 are planning to jointly develop two 4-storey buildings to be utilised as residential dwellings, and student accommodation on the parcel of land. The estimated gross development value for the proposed development is A$54.8 million.
In its announcement, MRCB said that this acquisition “will provide an inroad for MRCB to expand its property business in Australia”.
For its six months ended June this year, MRCB’s net profit rose 28.72% year-on-year to RM12.19 million while revenue slipped 5.61% to RM382.84 million.
MRCB closed at RM1.35 yesterday, rising two sen.
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