MRCB submits tender to buy French Embassy land

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KUALA LUMPUR (Apr 13): Malaysian Resources Corp Bhd (MRCB) said it has submitted a tender to acquire the 3.2ha piece of land that belongs to the French Embassy in Jalan Ampang here and is still waiting for the outcome of the tender.

"We will make the appropriate announcement to Bursa Malaysia in accordance with the listing requirements, as and when required," it said in a filing with Bursa Malaysia today.

The Edge Financial Daily had in December last year reported that the land will be sold via an exclusive tender by CB Richard Ellis (CBRE) Malaysia. The French government was reportedly expecting bids of around RM600 million, which equates to about RM1,800 per sq ft.

MRCB also came out to say that its recent share swap deal with DMIA Sdn Bhd was to enhance its strategic focus on its current development projects.

"This is in line with MRCB’s focus on offering innovative and focused development that seek to fulfill the aims of various market segment buyers that appeal to various lifestyle requirements, and at the centre of this focus is the continuous effort to increase land bank holdings that will allow the diverse development ideas to unfold.

"This has shifted the group’s main thrust to developing ideas for the acreage it holds," it said in a statement today.

On April 1, 2015, MRCB had signed a share swap agreement with DMIA where the former will transfer its 100% equity interest in Lotus Terrain Sdn Bhd, which will undertake the construction works of the Klang Valley double track rehabilitation project.

In exchange, DMIA will transfer its 30% stake in Country Annexe Sdn Bhd to MRCB.

MRCB said the swap is a win-win situation for both parties and will allow MRCB to fully be in control of its development work via Country Annexe, which include developments in Brickfields.

In a separate proposal, MRCB will dispose of its 70% stake in Paradigma Berkat Sdn Bhd to DMIA for RM39 million, which will in turn allow DMIA to be fully in control of its business direction via Paradigma Berkat.

MRCB shares closed up 2.36% to RM1.30 today, with a market capitalisation of RM2.32 billion.

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