By Sharen Kaur
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is planning a mixed-used integrated project with a gross development value (GDV) of around RM1.3 billion on the German embassy land here.
Its executive director, Mohd Imran Salim, said the group hoped to start the development early next year.
"We are looking at multiple options. It will be a mixed-used project but we are still finalising the components.
"We expect the project to generate a GDV of RM1.2 billion to RM1.3 billion but this may change as the planning progresses.
"We have just signed the sale and purchase agreement and will start applying for the necessary approvals.
"We hope to start construction next year," he told Business Times.
MRCB, which has a market capitalisation of RM2.23 billion, signed an agreement with the German government yesterday to buy the 0.76ha freehold tract in Jalan Kia Peng for RM259.16 million, or RM3,188 per square foot.
The price, based on the appraisal conducted by CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners, is about six per cent higher than the market value.
The German government had on January 26 put up a tender for the sale of the land, which served as the official residence of the German ambassador to Malaysia until June 2013.
The deal was done via Legasi Azam Sdn Bhd (LASB), a 100 per cent-owned unit of MRCB Land Sdn Bhd, which in turn is fully-owned by MRCB.
MRCB group managing director Tan Sri Mohamad Salim Fateh Din signed on behalf of LASB while German ambassador to Malaysia, Holger Michael, signed for his government.
The acquisition is part of MRCB's strategy to grow its property development operations.
In a filing to Bursa Malaysia, MRCB said it hoped to conclude the deal by August.
It would finance the acquisition via bank borrowings and internally-generated funds.
For the 12 months to December 2014, MRCB achieved a net profit of RM152.63 million versus a net loss of RM109.13 million in 2013.
In a separate statement, Salim said the board was optimistic about its prospects after taking into consideration the scarcity of freehold land in the highly sought-after city centre.
"The supply of land is inelastic and the cost of land-banking will continue to rise," he added.
MRCB closed two sen higher to RM1.25 yesterday.
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is planning a mixed-used integrated project with a gross development value (GDV) of around RM1.3 billion on the German embassy land here.
Its executive director, Mohd Imran Salim, said the group hoped to start the development early next year.
"We are looking at multiple options. It will be a mixed-used project but we are still finalising the components.
"We expect the project to generate a GDV of RM1.2 billion to RM1.3 billion but this may change as the planning progresses.
"We have just signed the sale and purchase agreement and will start applying for the necessary approvals.
"We hope to start construction next year," he told Business Times.
MRCB, which has a market capitalisation of RM2.23 billion, signed an agreement with the German government yesterday to buy the 0.76ha freehold tract in Jalan Kia Peng for RM259.16 million, or RM3,188 per square foot.
The price, based on the appraisal conducted by CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners, is about six per cent higher than the market value.
The German government had on January 26 put up a tender for the sale of the land, which served as the official residence of the German ambassador to Malaysia until June 2013.
The deal was done via Legasi Azam Sdn Bhd (LASB), a 100 per cent-owned unit of MRCB Land Sdn Bhd, which in turn is fully-owned by MRCB.
MRCB group managing director Tan Sri Mohamad Salim Fateh Din signed on behalf of LASB while German ambassador to Malaysia, Holger Michael, signed for his government.
The acquisition is part of MRCB's strategy to grow its property development operations.
In a filing to Bursa Malaysia, MRCB said it hoped to conclude the deal by August.
It would finance the acquisition via bank borrowings and internally-generated funds.
For the 12 months to December 2014, MRCB achieved a net profit of RM152.63 million versus a net loss of RM109.13 million in 2013.
In a separate statement, Salim said the board was optimistic about its prospects after taking into consideration the scarcity of freehold land in the highly sought-after city centre.
"The supply of land is inelastic and the cost of land-banking will continue to rise," he added.
MRCB closed two sen higher to RM1.25 yesterday.
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