MRCB to pump RM816.6m into MX-1 project

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB), which in July this year won the bid to develop the RM8 billion MX-1 project, will spend RM816.6 million for a 70% stake in a special purpose vehicle (SPV) company known as Kwasa Development (2) Sdn Bhd, tasked to undertake the project.

The remaining 30% is held by Kwasa Land Sdn Bhd, a wholly-owned subsidiary of the Employees Provident Fund (EPF).

The MX-1 is slated to be the main town centre of the Kwasa Damansara township development to be undertaken by Kwasa Land. The project, located on a 64-acre (25.9ha) land earmarked for mixed development, is the first to be undertaken in the Kwasa Damansara township.

A shareholders’ agreement for the MX-1 project was signed yesterday between Kwasa Land and MRCB to jointly develop the highly-sought-after MX-1 project. The deal defines the scope, terms and conditions between the two companies.

“With the signing of this agreement, we now have a clear path to the vision ahead for Kwasa Damansara. Our relationship as partners is now clearly laid out for us to proceed with work on this huge and exciting new township that will initially serve the living and working requirements of 135,000 residents,” said MRCB group managing director Tan Sri Mohamad Salim Fateh Din in a statement yesterday.

In a separate statement, Kwasa Land said the agreement will also see MRCB warranty a profit of RM2 billion to the SPV company.

Kwasa Land said it had obtained a principal approval for the master layout plan from the Shah Alam City Council.

“The full approval is expected before the end of the year, with infrastructure works to kick off by the first quarter of 2015.

For starters, Kwasa Land will be inviting Tier 3 bumiputera developers for the inaugural bumiputera development by the third quarter of this year.

Kwasa Land also explained that MRCB was selected as the development partner as its proposal had received the highest combined technical and commercial score in the independently evaluated bid. The request-for-proposal saw the participation of 152 developers in a competitive bidding process.

From left: Kwasa Land chairman Tan Sri Samsudin Osman, managing director Mohd Lotfy Mohd Nor, Mohamad Salim and MRCB chairman Tan Sri Azlan Zainol at the signing ceremony for the MX-1 project in Kuala Lumpur yesterday.

As strategic master developer, Kwasa Land is mandated to develop a new sustainable community township over the next 20 years.

It will also incorporate an integrated transportation system that links the township via mass rapid transit to the rest of Klang Valley.


This article first appeared in The Edge Financial Daily, on August 15, 2014.