KUALA LUMPUR (Nov 17): Malaysian Resources Corp Bhd (MRCB) is disposing of a one acre plot of land to Mass Rapid Transit Corp Sdn Bhd (MRT Corp) for RM180 million due to concerns over its proximity to the construction of the MRT Line 2.

MRCB said its wholly-owned subsidiary OneSentral Park Sdn Bhd was in the initial stage of developing a block of serviced apartments on the land prior to receiving notice that the alignment of the MRT Line 2 crosses the site directly below the land.

The land is located along Jalan Conlay below which the MRT Line 2 is expected to connect the Conlay and Tun Razak Exchange stations.

“In view of the works to be carried out for MRT Line 2, the development at the land would be exposed to higher risk of significant delays and cost overruns.

“The proposed disposal will allow the MRCB group to avoid any potential risk and unlock value from the early monetisation of the land,” the group said in a filing to Bursa Malaysia.

MRCB had originally invested RM34.3 million in the leasehold plot in October 2012, according to its filing. The plot’s net book value is RM65.7 million, according to the group’s audited accounts for the year ended Dec 31, 2015 (FY15).

The disposal is expected to bring an estimated after-tax gain of RM38.1 million to the group, which is expected to improve its earnings for FY16.

The 52.2km MRT Line 2 stretches from Sungai Buloh to Putrajaya.

Shares of MRCB fell 2.19% or three sen to RM1.34 today with some 384,700 shares traded. The group has a market capitalisation of RM2.87 billion.