MRCB plans RM1.6b mixed project on German Embassy land
Date：2015/04/10
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KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) plans to build a mixed development with an estimated gross development value of between RM1.2 billion and RM1.6 billion on the 1.87 acres it recently acquired from the German Embassy.
"We have a couple of products in mind but the most suitable product will be the product that will meet the market requirements when we launch it. It will be a mixture of commercial and residential," its group managing director Tan Sri Mohamad Salim Fateh Din told reporters at the sidelines of the officiating ceremony for Menara Shell.
The group said in a filing to Bursa Malaysia on Tuesday that it had won the tender for the land along Jalan Kia Peng in Kuala Lumpur, which it will acquire for RM259.16 million cash. It expects to complete the acquisition by early August.
Mohamad Salim said the project will be launched next year after obtaining approvals from Kuala Lumpur City Hall.
"We have to pay our 90% and then immediately we will start designing the product that we want to launch there. The product is very important...because the product then will be your determining factor on your profit," he said.
Salim said the acquisition will be completed once it meets some conditions precedent, which usually takes about three months to complete.
Commenting on the price it paid for the land, which is 6% higher than the market value based on the appraisal conducted by CH Williams Talhar & Wong and Raine & Horne International Zaki & Partners, Mohamad Salim said the RM3,100 psf it put in is the market price in the KLCC area.
"If you look at the pricing now, that is the going price there. That's the going price for around the area of KLCC and if you look at the valuers that came back, the price that MRCB paid was only 6% higher which doesn't have any impact on land cost," he added.
Mohamad Salim said MRCB is always seeking potential good land bank but declined to share the number of land tenders it is bidding for, except to say that its first choice will be in urban areas.
"We are urban developers, we do a lot of urbanisation. We are doing Penang Sentral which is very exciting and we are doing Kwasa Central. Kwasa Central we just won the tender and it is a very exciting project. We have a mall, we have 60% commercial and 40% residential there. These are the two new products that we will be launching for MRCB," he said