MRCB to acquire 59 iNC for RM110m, plans RM1.5b mixed devt

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KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) has proposed to acquire a company, 59 iNC Sdn Bhd, which has the rights to develop 27.41 acres of land in Setapak here, for RM110 million.
MRCB said on Thursday, April 7 it planned to undertake a mixed development project, comprising commercial and residential properties, with a gross development value (GDV) of RM1.5 billion.
“At a total development cost of approximately RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million representing 20% of the GDV,” it said.
MRCB said it had entered into a share sale agreement with Fadzil Ahmad, Usman Suratman and Mohd, Shamir Mohd Hassan for RM110 million cash consideration to acquire the entire stake in 59 iNC.
To recap, it said 59iNC had received a letter from the Land Office that it had granted a conditional approval for 59iNC to be the legal and beneficial owner of three plots of vacant government land in Mukim Setapak measuring 27.41 acres for mixed development.
“However, for the land to be granted to 59iNC, a payment of up to RM60.8 million (land revenue), being the alienation premium, quit rent and other charges, is to be paid to the Land Office within three months from Feb7, 2011,” it said.
MRCB said the purchase consideration took into account the outstanding land revenue payable by MRCB via 59iNC, the market value of the land of RM155.20 million as ascribed by C H Williams Talhar & Wong and the prospects of 59iNC’s intended mixed development.
MRCB said the land would be developed from 2012 over eight years 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 approximately RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million representing 20% of the GDV.
MRCB said the proposed acquisition would enable MRCB to expand its land bank and investment in strategic property developments to enhance the group’s profile and earnings prospect.