Active role for MRCB in Sg Buloh redevelopment

Some 1,214ha of rubber land in Sungei Buloh has been alienated to the pension fund, EPF, which owns 40 per cent of MRCB

Kuala Lumpur: Some 1,214ha of rubber land in Sungei Buloh, Selangor, has been alienated to the Employees Provident Fund (EPF), Malaysian Resources Corporation Bhd (MRCB)'s chief executive officer Datuk Mohamed Razeek Hussain told fund managers and analysts at the Invest Malaysia 2011 yesterday.



"Our chairman Tan Sri Azlan Zainol, who is also EPF's chief executive officer, told MRCB shareholders last week that the Sg Buloh land has already been alienated to the pension fund," Mohamed Razeek was quoted as saying by a fund manager who attended the briefing.

The land is currently owned by the Malaysian Rubber Board.

Mohamed Razeek said MRCB, which is 40 per cent controlled by the EPF, is set to be an active participant in the project.
"Mohamed Razeek said that since MRCB is 40 per cent controlled by EPF, MRCB can be expected to be active in the Sg Buloh redevelopment," a fund manager who did not want to be identified told Business Times after the closed-door presentation.

MRCB also plans for a mixed-development on 27.41 acres with gross development value (GDV) of RM1.5 billion in Setapak, Kuala Lumpur.

At a total development cost of RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million, representing 20 per cent of the GDV.

The land will be developed from 2012 over an eight year period into a mixed-development comprising both commercial and residential properties with an estimated GDV of about RM1.5 billion.

At a total development cost of RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million, representing 20 per cent of the GDV.

MRCB derives recurring income from leasing out some of its properties and collecting tolls from its Duta Ulu Kelang Expressway in Klang Valley and the Eastern Dispersal Link in Johor that connects to the North-South Expressway.

"Going forward, Mohamed Razeek also said the group is hopeful that its recurring income from building leases and tolled roads would make up 35 per cent of group revenue," the fund manager said.

Apart from property development, MRCB also bids for construction work. Currently, the group's order book totals RM1.6 billion and this will ensure sustained income for another 30 months.

By Business Times