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KUALA LUMPUR (Dec 20): Malaysian Resources Corp Bhd (MRCB) has received RM1.07 billion from the Employees Provident Fund (EPF) for its subscription to 80% of Bukit Jalil Sentral Property Sdn Bhd (BJSP), the special-purpose joint-venture company undertaking the development of Bukit Jalil Sentral.
Bukit Jalil Sentral, which measures 76.14 acres (30.81ha), is a mixed development project with a gross domestic product (GDV) of RM21 billion. The 80% equity interest in BJSP will reside with the EPF’s unit Tanjung Wibawa Sdn Bhd, while MRCB’s subsidiary Rukun Juang Sdn Bhd will retain a 20% equity interest. The land will be developed over the course of 20 years, ensuring a sustainable pipeline of construction contracts for the group in the long term.
Recently, MRCB has also received a settlement sum of RM1.32 billion from the Malaysian government over the termination of its concession for the Eastern Dispersal Link Expressway.
In a statement yesterday, the group said the payment had further strengthened the group’s balance sheet, reducing its net gearing to 24%. “During the four-year transformation, MRCB has successfully reduced its net gearing from 172% to 24%, and it has increased its urban landbank fourfold to 282 acres, with GDV increasing almost threefold to RM31 billion.”
It said MRCB’s external construction order book had also grown exponentially during this time, from only RM2 billion to RM21 billion, which is currently ranked as the highest in the industry.
This article first appeared in The Edge Financial Daily, on Dec 20, 2018.
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